Oil prices are set to end the week of February 19 with gains, driven by concerns over supply disruptions in Russia and an improving demand outlook in the United States and China. Brent futures experienced a slight dip, settling at $76.27 a barrel, while U.S. West Texas Intermediate crude also saw a minor decrease, reaching $72.26.
Both benchmarks have risen by approximately 2% this week, marking their most significant weekly advance since early January. Market attention has been focused on disruptions to oil supply, particularly after Russia reported a reduction of 30%-40% in Caspian Pipeline Consortium oil flows due to a Ukrainian drone attack. Despite the damage, Kazakhstan has managed to pump record oil volumes.
Analysts at JPMorgan noted that global oil demand has averaged 103.4 million barrels per day through February 19, a 1.4 million bpd increase. They anticipate further demand increases due to cold weather in the U.S. and increased industrial activity in China.