Oil prices jumped 1.5% in the first session of the New Year, due to potential supply disruptions in the Middle East after a naval clash in the Red Sea, and hopes of strong holiday demand and an economic stimulus in China, the top crude importer.
Brent crude rose $1.20, or 1.5%, to $78.24 a barrel by 0438 GMT while U.S. West Texas Intermediate crude was at $72.66 a barrel, up $1, or 1.4%.
A Reuters survey of economists and analysts predicted Brent crude would average $82.56 a barrel this year, slightly higher than the average of $82.17 in 2023. Analysts forecast that weak global growth would cap demand, but expected geopolitical tensions to provide support.
