---
title: "Oil prices settle up on possible supply disruption, hopes for China demand"
description: "Oil prices settled higher on Tuesday, driven by concerns over limited supply from Russia and Iran because of Western sanctions and expected higher Chinese demand."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "International Finance"
author: "Reuters"
author_url: "https://www.dailymaverick.co.za/author/reuters/"
canonical_url: "https://www.dailymaverick.co.za/article/2025-01-08-oil-prices-settle-up-on-possible-supply-disruption-hopes-for-china-demand/"
published: "2025-01-08T00:01:42"
updated: "2025-01-08T00:01:44"
lang: "en-ZA"
word_count: 281
---

# Oil prices settle up on possible supply disruption, hopes for China demand

> Oil prices settled higher on Tuesday, driven by concerns over limited supply from Russia and Iran because of Western sanctions and expected higher Chinese demand.

By Reuters · Published 8 January 2025, 02:01 SAST · Updated 8 January 2025, 02:01 SAST

## Key points
- Oil prices are on the rise, buoyed by Middle Eastern market strength and a chilly forecast, but China's ban on US-sanctioned vessels and lackluster economic data are keeping traders on their toes, proving that in the world of crude, it's all about playing the long game.
- Brent and WTI crude prices rise, settling at $77.05 and $74.25 per barrel, respectively.
- China's Shandong Port bans US-sanctioned oil vessels, impacting major energy terminals.
- Increased demand for Middle Eastern oil amid tightening sanctions boosts Saudi Arabia's February prices.
- Economic data raises concerns over demand, despite cold weather driving heating oil needs.

## Content

- Brent and WTI climb
- China's Shandong Port blacklists US-sanctioned oil vessels, traders say
- Middle East market strength provides support
- Economic data undermines demand hopes

HOUSTON, Jan 7 (Reuters) - Brent crude futures settled at $77.05 a barrel, up 75 cents, or 0.98%. US West Texas Intermediate (WTI) crude finished at $74.25 a barrel, up 69 cents, 0.94%.

Traders were looking to the Chinese stimulus plans to drive growth as supplies are tight following the Christmas and New Year's holidays, said Forex market analyst Razan Hilal.

"While the market is currently range-bound, it is recording gains on the back of improved demand expectations fueled by holiday traffic and China’s economic pledges," Hilal said in a morning note. "However, the primary trend remains bearish."

Some market participants have apparently started to price in small supply disruption risks on Iranian crude exports to China, said UBS analyst Giovanni Staunovo.

Concern over [sanctions](https://www.reuters.com/world/us-deepens-sanctions-irans-shadow-oil-fleet-2024-12-03/) tightening supply has translated into increased demand for Middle Eastern oil, reflected in a rise in [Saudi Arabia's February oil prices](https://www.reuters.com/business/energy/saudi-hikes-february-oil-prices-asia-first-time-3-months-2025-01-06/) to Asia, the first such increase in three months.

On Monday in China, Shandong Port Group issued a notice [banning](https://www.reuters.com/business/energy/chinas-shandong-port-group-blacklists-us-sanctioned-oil-vessels-say-traders-2025-01-07/) US-sanctioned oil vessels from its network of ports, three traders said, potentially restricting blacklisted vessels from major energy terminals on China's east coast.

Shandong Port Group oversees large ports on China's east coast, including Qingdao, Rizhao and Yantai, which are major terminals for importing sanctioned oil.

Meanwhile, cold weather in the US and Europe boosted heating oil demand, though oil price gains were capped by global economic data.

Euro zone inflation [accelerated](https://www.reuters.com/markets/europe/euro-zone-inflation-jumps-higher-energy-costs-2025-01-07/) in December, an expected blip that is unlikely to derail further interest rate cuts from the European Central Bank.