Oil prices rose slightly on Thursday, supported by firm winter fuel demand expectations despite large U.S. fuel inventories and economic concerns.
Brent crude futures increased by 35 cents, or 0.5%, to $76.51 a barrel by 1246 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose 30 cents, or 0.4%, to $73.62.
Both benchmarks fell over 1% on Wednesday due to a stronger dollar and a larger-than-expected rise in U.S. fuel stockpiles. Data from the Energy Information Administration (EIA) showed rising gasoline and distillate inventories in the United States last week.
Market structure in Brent futures shows concerns over supply constraints as demand increases. The premium of the front-month Brent contract over the six-month contract reached its widest level since August, indicating tighter supply or growing demand.
The U.S. is expected to announce new sanctions targeting Russia’s economy this week, focusing on its oil industry, as part of efforts to support Ukraine. These measures come ahead of President-elect Donald Trump’s inauguration on January 20.
