Oil prices gain in Asian trading on Friday after the U.S. imposed stricter sanctions on Iranian oil and shipping. However, concerns about an oversupplied market persisted. Traders closely watched geopolitical developments and economic data for further price direction.
Brent crude futures for May rose 0.4% to $70.16 per barrel. Meanwhile, West Texas Intermediate (WTI) crude futures climbed 0.5% to $66.58 per barrel. Despite these gains, both contracts were set for a weekly loss of 0.3%.
On Thursday, the U.S. intensified its pressure campaign on Iran by sanctioning Oil Minister Mohsen Paknejad. Additionally, measures targeted entities and vessels linked to Iran’s "shadow fleet," which helps the country bypass existing restrictions.
The U.S. Treasury’s Office of Foreign Assets Control (OFAC) stated that Iran employs various tactics to evade detection. These include falsifying shipping documents, altering vessel tracking data, and frequently changing vessel identities.
The new sanctions aim to curb Iran’s ability to fund its regional activities through oil exports. They also reinforce Washington’s commitment to preventing Iran from developing nuclear weapons.
Despite supply constraints from sanctions, concerns over a potential oversupply weighed on oil prices. The International Energy Agency (IEA) projected that global oil supply could exceed demand by 2025.
The IEA revised its demand growth forecasts downward due to deteriorating macroeconomic conditions. Additionally, escalating trade tensions between the U.S. and multiple countries added to uncertainties in the market.
OPEC+ nations plan to gradually reverse their voluntary production cuts from April 2025. Key producers, including Saudi Arabia, Russia, and Iraq, have already increased output. In February, OPEC+ raised its collective production by 363,000 barrels per day to 41.01 million barrels per day.
Traders are monitoring ceasefire negotiations between Russia and Ukraine. A successful agreement could stabilize energy supplies, reducing price volatility.
Furthermore, U.S. inflation data for February showed softer-than-expected figures. Lower inflation may influence the Federal Reserve’s policy decisions, which could indirectly impact the gain of oil prices.
As market conditions evolve, oil prices will likely fluctuate based on supply trends, geopolitical developments, and economic indicators.
💡 Stay ahead of market trends with the latest Forex news and analysis! Visit our website for more updates: https://fixiomarkets.com/en/prex-blogs
Oil prices gain after US sanctions on Iran, but oversupply risks persist. Traders monitor geopolitical tensions and economic data.
Superior trade execution & trading conditions with the NDD method.
The online FX industry provides a platform for investors worldwide to engage in the buying and selling.
Subscribe to our daily newsletter and get the best forex trading information and markets status updates
Trade within minutes!
日本語
English
Comment (0)