Oil prices steady but heads for weekly rise

Oil drilling rigs

Oil prices remained steady on Friday but are on track to post gains for the first time in three weeks amid concerns over reduced global supply due to additional Western sanctions on Russia and Iran.

Futures prices for benchmark Brent crude for February delivery were stable at $73.43 a barrel as of 9:07 am KSA time. Similarly, US WTI crude futures for January delivery held firm at $70.08 a barrel, with both benchmarks up by over 3% for the week.

Oil prices received support this week from remarks by US Treasury Secretary Janet Yellen on Wednesday, stating that the current decline in global oil demand provides an opportune moment to impose additional sanctions on Russia.

Additionally, optimism among investors grew as leaders of the Chinese Communist Party pledged further measures to stimulate the economy and domestic demand, boosting confidence in the future of oil consumption in the world's second-largest economy.

Moreover, the International Energy Agency (IEA) raised its forecast for global oil demand growth in 2025, though it maintained its outlook for ample market supply, which tempered the positive momentum in prices.