Icy weather expected to boost demand while supply could be hit by sanctions
Brent crude and WTI jump around 2
Inflation fears are also supporting oil prices, says analyst

LONDON, Jan 10 Reuters Oil prices rose on Friday and were on track for a third straight week of gains as traders focused on potential supply disruptions from sanctions while icy conditions in parts of the United States and Europe are expected to drive up fuel demand.

Brent crude futures gained 1.57, or 2.04, to 78.49 a barrel by 0945 GMT. U.S. West Texas Intermediate crude futures advanced 1.51, or also 2.04, to 75.43.

Over the three weeks to Jan. 10, Brent has climbed over 7.5 while WTI has jumped more than 8.5.

There are several drivers today. Short term, the weather is very cold across the U.S., driving up demand for fuels. Longer term, the market is focused on the prospect for additional sanctions, especially against Iran, said Ole Hansen, head of commodity strategy at Saxo Bank.

The U.S. weather bureau expects central and eastern parts of the country to experience belowaverage temperatures. Many regions in Europe have also been hit by extreme cold and are likely to continue to experience a colder than usual start to the year, which JPMorgan analysts expect to boost demand.

We anticipate a significant yearoveryear increase in global oil demand of 1.6 million barrels a day in the first quarter of 2025, primarily boosted by … demand for heating oil, kerosene and LPG, they said in a note…