Oil prices are rising due to increased winter demand for fuel.

Oil prices increased at the start of trading on Friday, January 10, marking a potential rise for the third consecutive week, as icy conditions in some areas of the U.S. and Europe boosted demand for heating fuel.

According to Ukrinform, this information was reported by Reuters.

Brent crude oil futures rose by 40 cents, or 0.5%, to $77.32 per barrel. West Texas Intermediate crude prices in the U.S. climbed by 38 cents, also 0.5%, to $74.30.

Over the past three weeks, Brent has increased by 6%, while WTI has risen by 7%.

JPMorgan analysts attribute this increase to concerns over supply disruptions due to intensified sanctions, coupled with low oil inventories, frigid temperatures across many parts of the U.S. and Europe, and improved sentiment regarding China's stimulus measures.

The U.S. Weather Bureau expects temperatures in the central and eastern regions of the country to be below average. Many regions in Europe have also been affected by severe cold, and the beginning of the year is likely to be colder than usual, which analysts at JPMorgan anticipate will drive up demand.

“We expect a significant increase in global oil demand compared to last year, with an increase of 1.6 million barrels per day in the first quarter of 2025, primarily driven by... demand for fuel oil, kerosene, and liquefied gas,” JPMorgan noted.

Oil prices have risen despite the strengthening of the U.S. dollar for six consecutive weeks. A stronger dollar typically impacts prices as it makes purchasing crude oil outside the United States more expensive.

Supplies could face further challenges as President Joe Biden is expected to announce new sanctions against the Russian economy this week, aiming to bolster Ukraine's military efforts against Moscow before newly elected President Donald Trump takes office on January 20. The primary target of these sanctions is Russia's oil industry.