Oil prices rose as OPEC forecast relatively strong growth in global oil demand over the next two years and the market eyed disrupted US oil production amid a cold blast, as well as geopolitical tensions in the Middle East.

Brent crude futures gained 21 cents, or 0.3 per cent, to $78.09 a barrel, while US West Texas Intermediate crude futures rose 40 cents, or 0.6pc, to $72.96.

Attacks by Yemen’s Houthis on ships in the Red Sea have forced many companies to divert cargoes around Africa, adding to journey times and costs. The US conducted another round of strikes against Houthi targets in Yemen in retaliation for the attacks on shipping.

The Iran-aligned Houthis say they are acting in solidarity with Palestinians during Israel’s ongoing war with Gaza.