Oil prices remain at a peak due to high demand.
Oil prices reached their highest level in the last month
Oil prices rose on Monday, reaching their highest level since mid-October due to cold weather boosting demand, a weakening dollar, and expectations of stricter sanctions on Iranian and Russian oil exports.
According to Reuters, Brent crude oil futures gained 49 cents, or 0.6%, to $77 per barrel, the highest level since October 14. West Texas Intermediate crude rose 49 cents, or 0.7%, to $74.45, marking a peak since October 11, reported Ekonomichna Pravda.
Earlier, oil prices had been rising for five consecutive trading sessions, contributing to hopes for increased demand due to colder weather in the Northern Hemisphere and new financial stimuli to support the Chinese economy.
According to SEB analyst Bjarne Schieldrop, Brent prices were supported by extremely cold weather in Northwestern Europe and the U.S., rising natural gas prices, and increased profitability of oil refining.
The weakening U.S. dollar also contributed to the price increase. A weaker dollar makes commodities like oil cheaper for buyers using other currencies.
On Monday, the dollar dropped by 1% following a report by the Washington Post that President-elect Donald Trump is considering implementing tariffs that would only apply to critical imported goods.
On the supply front, a tightening of Western sanctions on Iranian and Russian oil supplies seems highly probable.
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