Oil Prices Climb 5% Amid Iran Sanctions and OPEC Output Cuts

Global crude oil prices rose about 5%, registering their first weekly gain in three weeks. Brent Crude futures settled at 67 dollars and 96 cents per barrel while WTI Crude closed at 64 dollars and 68 cents per barrel.

Earlier this week, President Donald Trump’s administration issued new sanctions to curb Iran’s oil exports, including a China-based “teapot” oil refinery for purchasing more than 1 billion dollars worth of Iranian crude, the second Chinese refiner to be hit with direct sanctions, ramping up pressure on Tehran amid talks on the country’s



nuclear programme.

Adding to the pressure, the Organization of the Petroleum Exporting Countries (OPEC) said it had received updated plans for Iraq, Kazakhstan and other countries to make further output cuts to compensate for pumping above quotas. However, OPEC, the International Energy Agency and several banks, including Goldman Sachs and JPMorgan, cut forecasts on oil prices and demand growth this week as US tariffs and retaliation from other countries raised concerns regarding global trade disruptions.