Oil prices gained on Friday as fresh United States sanctions against Iran and Russia helped counter losses triggered by a bleak demand outlook from the International Energy Agency (IEA).
By 3:15 pm AEDT (4:05 am GMT) Brent crude climbed $0.44 or 0.6% to US$70.32 per barrel, while West Texas Intermediate added $0.47 or 0.7% to US$67.02 per barrel.
The White House imposed new sanctions on Iran’s oil minister, targeting additional companies and vessels involved in crude transportation. It also restricted payment mechanisms for Russian energy transactions, adding pressure to the country’s oil exports.
Thursday’s decline followed the IEA’s latest Oil Market Report, which projected a growing supply surplus as escalating trade tensions weigh on demand just as OPEC+ ramps up production.
ANZ analysts highlighted concerns over trade tensions impacting global oil demand, stating: "Rising trade tensions are threatening to slow the already anaemic rebound in oil demand.
“The talk coming out of the CERAWeek conference in Houston was also around an oversupplied market. Most price projections were to the downside in the short term, but geopolitical tension could still cause supply disruptions.”
