Oil rises on forecasts for increased heating fuel demand

Oil drilling rigs

Oil prices rose today, Jan., 10, heading for gains for the third straight week, driven by expectations for increased demand in Europe and the US due to cold weather.

Brent crude futures for March delivery rose 0.51%, or $0.39, to $77.31 a barrel as of 9:08 am KSA time.

US West Texas Intermediate (WTI) crude futures for February delivery climbed 0.51%, or $0.38, to $74.30 a barrel.

Brent crude gained nearly 6% over the three weeks ending Jan. 10, while US crude advanced by about 7% during the same period.

Analysts at JP Morgan attribute this to heightened concerns over supply disruptions following tighter US sanctions on Russian and Iranian oil, as well as significantly lower temperatures across various regions in Europe and the US, according to Reuters.

The US National Weather Service forecasts below-average temperatures in the eastern regions of the country, while parts of Europe have recently experienced frost waves, according to the agency.