Oil market rose to multi-week highs on geopolitical tensions and sanction prospects
Meanwhile, Chinese demand provided additional support to prices. Data released this week revealed that China, the world’s largest crude importer, experienced annual growth in crude imports for November—the first such increase in seven months.
Crude oil prices climbed by approximately 2% on Friday, driven by heightened geopolitical tensions and the potential for expanded sanctions on Russia and Iran. These factors outweighed projections of a potential supply surplus in the global market next year, bolstering investor sentiment.
Brent increased by $1.08, or 1.5%, to settle at $74.49/barrel, marking their highest close since November 22 and a weekly gain of 5%.
WTI rose $1.27, or 1.8%, to end the session at $71.29/barrel, its strongest level since November 7, reflecting a 6% gain for the week.
Geopolitical developments played a critical role in the price rebound. The European Union advanced its 15thpackage of sanctions against Russia this week, targeting the country's shadow tanker fleet in response to the ongoing conflict in Ukraine. The United States is reportedly considering similar measures.
Meanwhile, Chinese demand provided additional support to prices. Data released this week revealed that China, the world’s largest crude importer, experienced annual growth in crude imports for November—the first such increase in seven months. Imports are expected to remain elevated into early 2025, as Chinese refiners capitalize on competitive pricing from Saudi Arabia, the top exporter, and independent refiners rush to maximize their quotas.