Oil prices rose in early Asian trade and were on track for a third straight week of gains with icy conditions in parts of the United States and Europe driving up fuel demand for heating.
Brent crude futures climbed 24 cents, or 0.3%, to $77.16 a barrel at 0138 GMT. U.S. West Texas Intermediate crude futures gained 26 cents, or 0.4%, to $74.18.
Over the three weeks ending Jan. 10, Brent has advanced 5.9% while WTI has jumped 6.9%.
Analysts at JPMorgan attributed the gains to growing concern over supply disruptions due to tightening sanctions, amid low oil stockpiles, freezing temperatures in many parts of the U.S. and Europe and improving sentiment regarding China’s stimulus measures.
The U.S. weather bureau expects central and eastern parts of the country to experience below-average temperatures.
Many regions in Europe have also been hit by extreme cold and will likely continue to experience a colder-than-usual start to the year, which JPMorgan analysts expect to boost demand.
