Oil advanced on Thursday, as OPEC projected a rather robust increase in oil demand globally through the next two years while the market focused on the Middle East's geopolitical unrest as well as the disruptions to U.S. oil output during the winter snap.

Brent crude added 0.3%, to $78.09 per barrel meanwhile US WTI rose 0.6%, to $72.96 per barrel.

In a monthly report, OPEC stated that a strong 1.85 million bpd increase in global oil demand to 106.21 million bpd is anticipated in 2025. According to OPEC's December prediction, demand increase for 2024 would be 2.25 million barrels per day.

Prices were limited for the time being, though, as the market took into account conflicting factors.

Although the market is still cautious about geopolitical concerns, Yeap noted that an unanticipated increase in U.S. crude stockpiles and difficult recovery conditions in China continue to cloud the outlook for oil consumption.

The Houthis of Yemen have attacked ships in the Red Sea, forcing numerous businesses to reroute their cargo around Africa, increasing both the cost and duration of the journey.