By Enes Tunagur
LONDON (Reuters) – Oil prices rose on Friday, en route to a fourth straight week of gains, as the latest U.S. sanctions on Russian energy trade increased expectations of oil supply disruptions.
Futures were trading 36 cents or 0.4% higher at $81.65 a barrel at 1113 GMT, having gained 2.4% so far this week.
U.S. West Texas Intermediate crude futures rose 53 cents or 0.7% to $79.21 a barrel, after climbing 3.5% for the week.
Last Friday, the Biden administration unveiled broader sanctions targeting Russian oil producers and tankers.
“Supply concerns related to US sanctions against Russian oil producers and tankers, combined with expectations of a recovery in demand led by possible US interest rate cuts, are supporting the crude market” , said Toshitaka Tazawa, analyst at Fujitomi Securities.
Investors are also weighing the potential implications of Donald Trump’s return to the White House next Monday. Trump’s pick for Treasury secretary has said he’s ready to impose tougher sanctions on Russian oil.
“While Rubio and Bessent’s comments point to possible new sanctions against oil producers, market participants prefer to wait for the next US president’s decision,” said Giovanni Staunovo, an analyst at UBS.
Expectations of better demand have provided some support to the oil market. Data showed a slowdown in inflation in the United States, the world’s largest economy, boosting hopes for lower interest rates.
Traders are also evaluating new data from China, the world’s largest oil importer. Its economy met the government’s ambitions of 5% growth last year.
Expectations of a halt to attacks by Yemen’s Houthi militia on ships in the Red Sea following the Gaza ceasefire deal weighed on oil prices.
The Houthi attacks have disrupted global shipping, forcing ships to make longer and more expensive journeys around southern Africa for more than a year.
Israel’s cabinet is close to approving a ceasefire agreement in Gaza with the militant group Hamas, Prime Minister Benjamin Netanyahu’s office announced Friday.
