Crude Oil Prices Surge Supported by Sanctions Risks
Oil prices posted a weekly gain, the first time since January, on the back of the latest round of sanctions against Iranian crude exports. In the global commodity market on Monday, Brent has climbed close to $72 while U.S. West Texas hovered around $69 per barrel.
The prices of crude oil are well supported as supply-side risks increased following tougher sanctions on Iranian oil exports last week, according to commodities strategists at ING.
Brent surged 2.2% while U.S. West Texas Intermediates saw a similar uptrend after a sequence of price declines since President Donald Trump initiated trade war with other countries early in the year.
“Tighter sanctions on Iranian oil exports provided some support, along with compensation plans from some OPEC+ members for overproduction”, ING says. However, questions remain about whether members will actually stick to the compensation plan and cut output.
Elsewhere, oil could receive further support this week amid reports that the Trump administration’s reciprocal tariffs set for 2 April may not be as severe as initially feared and that they might be more targeted.
The oil rig count in the US decreased by 1 this week, oilfield services company Baker Hughes data showed Friday. The number of oil rigs, an indicator of short-term production in the country, fell to 486 for the week ending March 21.
The number of US oil rigs dropped by 23 compared to one year ago. The price of international benchmark Brent crude stood at $71.72 per barrel at Friday’s trading close, while American benchmark West Texas Intermediate (WTI) was at $68.25 a barrel. Seplat Energy Trades Flat Despite Price Sensitive Corporate Actions
