Oil prices saw an uptick in early Asian trading on Friday, setting the stage for a potential second consecutive week of gains. The rise came after the United States imposed new sanctions on Iran, and OPEC+ announced plans to further reduce output, both contributing to expectations of tighter oil supply.
By 0026 GMT, Brent crude futures increased by 42 cents, or 0.6%, to $72.40 per barrel, while U.S. West Texas Intermediate (WTI) crude futures climbed by 45 cents, or 0.6%, to $68.52 per barrel. Both benchmarks were on track for a weekly rise of around 2%, marking their biggest weekly gains since the start of 2025.
On Thursday, the U.S. Treasury introduced new sanctions targeting Iran, which included measures against an independent Chinese refiner and various entities involved in the delivery of Iranian crude oil to China. This marks the fourth round of sanctions imposed on Iran, following President Donald Trump’s commitment in February to reinstate a “maximum pressure” campaign aimed at reducing Iran’s oil exports to zero.
ANZ Bank analysts have predicted that the tightening of sanctions could lead to a reduction of up to 1 million barrels per day (bpd) in Iranian crude exports. Kpler, a vessel tracking service, reported Iranian crude oil exports at over 1.8 million bpd in February, although they noted that some activities could be obscured due to sanctions, possibly leading to revisions in these numbers.
In addition to sanctions, oil prices were supported by an OPEC+ plan announced on Thursday, which involves seven member countries reducing output further to address production above the agreed levels. The plan entails monthly reductions ranging from 189,000 bpd to 435,000 bpd and will continue until June 2026.
This strategy is designed to counterbalance the supply increases that OPEC+ had previously planned to implement starting next month, according to Amena Bakr, head of Middle East energy at Kpler, in a post on social media platform X.
Furthermore, Follow This, an activist investor group, announced plans to request a vote against the reappointment of BP's Chair Helge Lund at the company's shareholder meeting on April 17.
Earlier in March, OPEC+ confirmed that eight of its members would implement a monthly increase of 138,000 bpd starting in April, partially reversing the 5.85 million bpd in output cuts made since 2022, aimed at maintaining market stability.
