Oil futures closed higher as traders expressed concerns about supply disruptions from Russia and Iran, according to market reports.
The Brent crude oil contract for March delivery rose by 0.99%, reaching $76.92 per barrel on the Intercontinental Exchange.Meanwhile, the West Texas Intermediate (WTI) crude oil contract for February delivery increased by 0.82%, settling at $73.92 per barrel on the New York Mercantile Exchange.Citi analysts revised their price forecast for Brent crude oil in the first quarter of 2025 from $65 to $71 per barrel.
They based this adjustment on expectations of colder weather, which typically drives up energy consumption for heating.Despite maintaining a generally bearish outlook for oil prices throughout the year, Citi attributed this upward revision to potential geopolitical impacts on Iranian exports.Oil Prices Rise Amid Concerns Over Russian and Iranian Supply.
(Photo Internet reproduction)The bank also noted that additional factors could influence oil prices in early 2025.
These include a further decline in Russian exports, which preliminary data suggests fell below 4.5 million barrels per day.Additionally, there has been a decrease in oil shipments from West Africa.
In their report, Citi raised the possibility of stricter U.S.
sanctions against Iran under the new Trump administration.However, analysts believe the administration will likely avoid measures that could increase energy prices.
This reflects a cautious approach to foreign policy while balancing domestic economic interests.