Oil rises for second week as US sanctions, OPEC+ cuts tighten outlook

Shafaq News/ On Friday, oil prices closed slightly higher and recorded a second weekly gain, supported by fresh US sanctions on Iran and new OPEC+ output adjustments.

Brent crude rose three cents to settle at $72.03 a barrel, while US West Texas Intermediate (WTI) added 14 cents, or 0.2%, to $68.21. Brent gained more than 2% on the week and WTI about 1.7%, the largest weekly rises since early January.

The US Treasury announced sanctions on several entities and vessels involved in Iranian oil shipments, including a Chinese “teapot” refinery Washington described as a “lifeline” to Tehran’s export flows. It was the fourth round of measures since former President Donald Trump pledged in February to apply “maximum pressure” on Iran.

Meanwhile, OPEC+ members introduced a dual-track approach: seven producers agreed to additional cuts ranging from 189,000 to 435,000 barrels per day (bpd) through mid-2026, while eight others plan to increase output by 138,000 bpd from April.

ANZ Bank forecast Iranian exports could drop by 1 million bpd under the new restrictions. Kpler data showed Iranian crude exports exceeded 1.8 million bpd in February.

Traders and analysts said the moves supported prices but warned of uneven compliance. Kazakhstan, for example, exceeded its OPEC+ quota in March amid oil field expansions.