By Ahmad Ghaddar

LONDON (Reuters) – Oil prices continued to hit their highest since mid-October as cooler weather encouraged buying while further support came from expectations of tighter Iranian sanctions. and Russian oil exports.

Futures gained 22 cents, or 0.3%, to $76.73 a barrel at 1133 GMT, their highest since Oct. 14.

US West Texas Intermediate crude was up 23 cents, or 0.3%, at $74.19, the highest since Oct. 11.

Oil previously chalked up five sessions of gains, buoyed by hopes of increased demand after cooler weather in the Northern Hemisphere and more fiscal stimulus to revive China’s faltering economy.

Brent crude was supported by cooler-than-normal weather in northwestern Europe and the United States, a rally in prices and higher refining margins, said SEB analyst Bjarne Schieldrop.

Investors are also waiting for economic news for further indications of energy consumption and the interest rate outlook of the US Federal Reserve. The minutes of the Fed’s last meeting are due on Wednesday and the December payroll report is due on Friday.

Meanwhile, Saudi Aramco (TADAWUL:), the world’s leading oil exporter, raised crude oil prices in February for Asian buyers, the first increase in three months. A rise in these prices usually indicates stronger demand expectations.

On the supply front, stronger Western sanctions on Iranian and Russian oil shipments are a distinct possibility.

The Biden administration plans to impose more sanctions on Russia over its war in Ukraine, targeting its oil revenues with action against tankers carrying Russian crude, two sources with knowledge of the matter said. something said on Sunday.

Goldman Sachs expects Iranian oil production and exports to fall in the second quarter as a result of expected policy changes and tighter sanctions from the administration of incoming US President Donald Trump.

OPEC producer output could drop by 300,000 barrels per day (bpd) to 3.25 million bpd in the second quarter, the bank said.