Oil prices rose in early trading on January 10 and were on track to rise for the third week in a row as icy weather in some regions of the United States and Europe boosted fuel demand. Reuters writes about it, UNN reports.
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Brent crude oil futures rose 69 cents, or 0.9%, to $77.61 per barrel. Prices for West Texas Intermediate rose 66 cents, also 0.9%, to $74.58.
In the three weeks ended January 10, Brent rose by more than 6% and WTI by more than 7%.
JPMorgan analysts attributed the price increase to growing concerns about supply disruptions due to tighter sanctions against Russia and Iran, low oil inventories, cold temperatures in many parts of the US and Europe, and improved sentiment about China's stimulus measures.
According to the U.S. Weather Bureau, below-average temperatures are expected in the central and eastern parts of the country. Many regions of Europe have also suffered from extreme cold, and the beginning of the year is likely to be colder than usual, which, according to JPMorgan analysts, will increase fuel demand.