Sharjah 24 – Reuters: Oil prices edged up on Friday, set for their first weekly gain since late November, as supply concerns grew due to additional sanctions on Iran and Russia, though expectations of a surplus kept markets in check.
Brent crude futures increased by 5 cents to $73.46 per barrel, while U.S. West Texas Intermediate crude rose 8 cents to $70.1.
Both benchmarks are on track for weekly gains of over 3%, driven by concerns over tighter supplies from Russia and Iran, along with optimism that Chinese stimulus measures will boost demand.
China’s crude imports, the highest in the world, are expected to stay strong through early 2025, with refiners increasing purchases from Saudi Arabia due to lower prices and independent refiners filling their quotas.
The International Energy Agency (IEA) raised its demand growth forecast to 1.1 million barrels per day (bpd) for 2024, up from 990,000 bpd last month, primarily driven by Asian countries and China’s stimulus measures.
However, the IEA also predicted a surplus next year, as non-OPEC+ nations are set to boost supply by 1.5 million bpd, led by countries like Argentina, Brazil, and the U.S.
Market expectations are also high that the Federal Reserve will lower interest rates next week, following recent data showing an unexpected rise in weekly jobless claims.
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