NEW YORK- Oil prices climbed about 2 percent on Friday to settle at a three-week high, on expectations that additional sanctions on Russia and Iran could tighten supplies and that lower interest rates in Europe and the US could boost fuel demand.
Brent futures rose $1.08, or 1.5 percent, to settle at $74.49 a barrel. US West Texas Intermediate crude rose $1.27, or 1.8 percent, to settle at $71.29.
That was Brent’s highest close since Nov. 22 and put the contract up 5 percent for the week. WTI posted a 6 percent gain for the week and closed at its highest since Nov. 7.
“This strength is being driven by … expectations of tighter sanctions against Russia and Iran, more supportive Chinese economic guidance, Mideast political havoc and prospects for a Fed (US Federal Reserve) rate cut next week,” analysts at energy advisory firm Ritterbusch and Associates said in a note.
European Union ambassadors agreed to impose a 15th package of sanctions on Russia this week over its war against Ukraine, targeting its shadow tanker fleet. The US is considering similar moves.
Britain, France and Germany told the United Nations Security Council they were ready if necessary to trigger a so-called “snap back” of all international sanctions on Iran to prevent the country from acquiring nuclear weapons.
Chinese data this week showed crude imports in the world’s top importer grew annually in November for the first time in seven months. They are set to stay elevated into early 2025 as refiners opt to lift more supply from top exporter Saudi Arabia, drawn by lower prices, while independent refiners rush to use their quota.
