Economic Update: Oil Prices Rise Amid Sanction Developments
On Friday, oil prices experienced a notable increase as the United States implemented stricter sanctions on Iran and Russia, effectively reversing some of the losses witnessed in the previous trading session. This uptick comes on the heels of diminished expectations surrounding the demand forecasts from the International Energy Agency (IEA).
Brent crude oil surged to approximately $70 per barrel, marking a recovery from a 1.5% decline observed in the previous day. Meanwhile, West Texas Intermediate (WTI) crude prices fell below $67, according to available market data.
The latest sanctions from the White House specifically targeted the Iranian Oil Minister, along with additional companies and vessels implicated in the transportation of oil from this key member of the Organization of the Petroleum Exporting Countries (OPEC). Concurrently, efforts are underway to restrict payment methods for Russian energy exports.
The bearish trend on Thursday was partially driven by the IEA’s announcement, indicating that oversupply in the market is expected to deepen. This anticipated surplus comes amid escalating trade tensions that are exerting pressure on global demand, even as OPEC+ nations gradually increase production levels.
This downturn placed WTI crude on a trajectory toward its eighth consecutive weekly loss—the longest such streak since August 2015. Conversely, Brent crude has seen a decline for only the fourth week during this same period.
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