Brent crude consolidates gains at 7-year high

Oil drilling rigs

Oil prices rose by more than 1% today, Jan. 18, before the release of the monthly report from OPEC related to production levels in December, and the latest developments in supply and demand.

In a note cited by Reuters, analysts from Australian brokerage firm, CommSec, confirmed that oil prices were supported by colder winter temperatures in the northern hemisphere, and such conditions boosted demand for heating fuel.

Ash Glover, an analyst at CMC Markets, said that analysts' expectations indicate that demand will exceed supply this year, as the world is heading to reopen the economy and borders after two years of closures.

Brent crude for March delivery rose by 1.25%, or $1.08, to $87.56 a barrel, at 09.00am Makkah time - the highest level since Oct. 24, 2014.

WTI delivery for February delivery also rose 1.55%, or $1.30, to $85.12 a barrel.