Oil Rises, Set for First Weekly Gain in 3 Weeks

Oil prices rose slightly on Friday, heading for their first weekly gain since late November, as supply concerns deepened due to additional sanctions on Iran and Russia, while expectations of a surplus weighed on markets.

Brent crude futures were up 5 cents at $73.46 a barrel by 0716 GMT, while U.S. West Texas Intermediate (WTI) futures were up 8 cents at $70.1.

Latest Oil Prices

WTI Crude • 71.18 +1.16 +1.66%

Brent Crude • 74.42 +1.01 +1.38%

Murban Crude • 74.35 +0.97 +1.32%

Louisiana Light • 73.37 +1.82 +2.54%

Bonny Light • 78.62 -2.30 -2.84%

Mars US • 74.33 -1.26 -1.67%

Gasoline • 1.999 +0.010 +0.51%

Natural Gas • 3.282 -0.173 -5.01%

Both benchmarks are on track for weekly gains of more than 3% on supply concerns after tougher sanctions on Russia and Iran, as well as hopes that Chinese stimulus measures will boost demand in the world's second-largest oil consumer.

China's crude imports, the world's largest importer, are expected to remain high until early 2025 as refiners tend to increase supplies from top exporter Saudi Arabia due to low prices, while independent refiners rush to fill their quotas.

The International Energy Agency raised its demand growth forecast to 1.1 million barrels per day (bpd) in its monthly oil market report, from 990,000 bpd last month. It said demand growth “will largely come from Asian countries due to the impact of recent stimulus measures in China”.

However, the agency forecast a surplus next year, when non-OPEC+ countries are expected to increase supply by about 1.5 million bpd, led by Argentina, Brazil, Canada, Guyana and the United States.

Investors are betting that the Federal Reserve will cut borrowing costs next week, followed by further cuts next year, after economic data showed a surprise rise in weekly jobless claims.