By Enes Tunagur
LONDON (Reuters) – Oil prices rose on Friday, on track for a fourth straight week of gains, as the latest U.S. sanctions on Russian energy trade raised expectations of oil supply disruptions.
Futures were up 36 cents or 0.4% at $81.65 a barrel by 1113 GMT, having gained 2.4% so far this week.
US West Texas Intermediate crude oil futures rose 53 cents or 0.7% to $79.21 a barrel, after rising 3.5% for the week.
Last Friday, the Biden administration unveiled broader sanctions targeting Russian oil producers and tankers.
“Supply concerns over U.S. sanctions on Russian oil producers and tankers, combined with expectations of a demand recovery driven by potential U.S. interest rate cuts, are boosting the crude oil market.” “said Toshitaka Tazawa, an analyst at Fujitomi Securities.
Investors are also assessing the possible implications of Donald Trump’s return to the White House next Monday. Trump’s nominee for Treasury secretary said he was willing to impose tougher sanctions on Russian oil.
“While Rubio and Bessent’s comments point in the direction of possible additional sanctions that will affect oil producers, market participants prefer to wait for what the next US president will decide,” said UBS analyst Giovanni Staunovo.
Expectations of better demand lent some support to the oil market. The data showed that inflation eased in the United States, the world’s largest economy, bolstering hopes for interest rate cuts.
Traders are also evaluating new data from China, the world’s top oil importer. Its economy met the government’s ambitions of 5% growth last year.
Weighing on oil prices were expectations of a cessation of attacks by Yemen’s Houthi militia on ships in the Red Sea following the ceasefire agreement in Gaza.
The Houthi attacks have disrupted global shipping, forcing ships to make longer and more expensive voyages around southern Africa for more than a year.
The Israeli cabinet will approve an agreement with the Hamas militant group for a ceasefire in Gaza, Prime Minister Benjamin Netanyahu’s office said on Friday.