Crude oil futures ended sharply higher on Friday as the Biden administration in the U.S. is reportedly considering stricter sanctions on Russia's oil trade. According to a private report, U.S. President-elect Donald Trump is evaluating the possibility of pre-emptive strikes on Iran to stop its growing nuclear program. This move would mark a significant change from previously established U.S. policy on diplomacy and sanctions when dealing with Tehran. Besides, oil prices were also supported by optimism about interest rate cut by the Federal Reserve next week. Meanwhile, the European Central Bank lower its benchmark rate by 25 basis points on Thursday, and the Swiss National Bank cut rate by 50 basis points.
Benchmark crude oil futures for January delivery surged $1.27 or about 1.8 percent to settle at $71.29 a barrel on the New York Mercantile Exchange. Brent crude for February delivery gained $1.08 or 1.5 percent to settle at $74.49 a barrel on London's Intercontinental Exchange.
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