WASHINGTON (dpa-AFX) - Oil futures settled higher on Friday as supply worries resurfaced following additional sanctions on Iran and Russia. Data showing an increase in crude imports in China contributed as well to the rise in oil prices.
Earlier this week, European Union ambassadors agreed to a new raft of sanctions against Russia because of its war on Ukraine, mainly targeting Russia's massive shadow fleet of ships.
The Biden administration in the U.S. is reportedly considering stricter sanctions on Russia's oil trade.
According to a Wall Street Journal report, U.S. President-elect Donald Trump is evaluating the possibility of pre-emptive strikes on Iran to stop its growing nuclear program.
This move would mark a significant change from previously established U.S. policy on diplomacy and sanctions when dealing with Tehran.
West Texas Intermediate Crude oil futures for January closed up $1.27 or about 1.8% at $71.29 a barrel.
Brent crude futures settled at $74.49 a barrel, gaining $1.08% or about 1.5%.
The International Energy Agency's monthly oil report increased its forecast for 2025 global oil demand growth to 1.1 million barrels per day from 990,000 bpd last month.
Meanwhile, the UAE is reportedly planning to reduce oil shipments early next year as the OPEC group seeks to tighter discipline.
Oil was also supported by optimism about interest rate cut by the Federal Reserve next week.
The European Central Bank lower its benchmark rate by 25 basis points on Thursday, and the Swiss National Bank cut rate by 50 basis points.
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