Oil fell by around $1 a barrel on Thursday in volatile trade. It then it rose by more than 2% on Friday, heading for second weekly gain, on expectations of a drop in Russian crude supply. This fluctuation highlights risks to global supplies in the new year.
With a looming Arctic storm threatening U.S. travel during the holiday season, airlines canceled thousands of flights scheduled for Thursday and Friday. Those curtailed travel plans brought down oil demand. Meanwhile demand for heating oil is set to soar with sub-zero wind chills expected as far south as Texas and record-breaking lows forecast for Florida.