Oil jumps nearly 3% on concerns over more sanctions on Russia and Iran

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Oil jumps nearly 3% on concerns over more sanctions on Russia and Iran
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Brent crude futures gained $2.23 to $79.15 a barrel by 1130 GMT, while U.S. West Texas Intermediate crude futures advanced $2.19 to $76.11

Oil prices surged on Friday and were on track for a third straight week of gains as traders focused on potential supply disruptions from more sanctions on Russia and Iran.

“There are several drivers today. Longer term, the market is focused on the prospect for additional sanctions,” said Ole Hansen, head of commodity strategy at Saxo Bank. “Short term, the weather is very cold across the U.S., driving up demand for fuels.” “That would be the farewell gift of the Biden administration,” said PVM analyst Tamas Varga. Existing and possible further sanctions, as well as market expectations of draws on fuel inventories because of the cold weather, are driving prices higher, he added.

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