Bloomberg – Oil prices climbed as the United States imposed fresh sanctions on Iran and Russia, countering the decline caused by a weak demand forecast from the International Energy Agency (IEA).
Market Movement
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Brent crude rose above $70 per barrel, recovering from a 1.5% drop in the previous session.
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West Texas Intermediate (WTI) hovered near $67 per barrel.
Sanctions and Their Impact
The White House imposed new sanctions on Iran’s oil minister, along with additional companies and vessels involved in transporting Iranian crude. Additionally, the U.S. restricted payment options for Russian energy exports, intensifying economic pressure on the two major oil-producing nations.
IEA’s Demand Outlook
The price rebound follows a dismal demand forecast from the IEA, which warned of a deepening supply surplus due to the ongoing trade war and increased OPEC+ output.
WTI is on the brink of an eighth consecutive weekly loss, the longest stretch since August 2015, while Brent crude is close to recording its fourth straight weekly decline.
Future Projections
Analysts at ANZ Group Holdings Ltd., Daniel Hynes and Soni Kumari, predict that oil prices will stabilize in the second half of the year, with Brent crude pushing back toward $70 per barrel by year-end. They noted that Canadian crude tariffs and supply disruptions in Iran and Venezuela could keep markets tight in the short term.
