FX.co ★ Oil Rises, Posting 2nd Weekly Gains

WTI crude futures saw a modest rise of 0.3%, closing at $68.3 per barrel on Friday, marking their second consecutive week of gains with a 1.64% increase. This upward trend was bolstered by newly imposed U.S. sanctions on Iran and a recent OPEC+ agreement to reduce output among seven of its members. The U.S. Treasury has introduced new sanctions aimed at Chinese refineries and shipping vessels that are facilitating the import of Iranian crude, in a continuation of the U.S.'s "maximum pressure" strategy aimed at curbing Iran’s oil exports entirely. Analysts predict that these stricter sanctions could diminish Iranian exports by 1 million barrels per day. Oil prices received additional support from an OPEC+ blueprint to enforce further output reductions ranging from 189,000 to 435,000 barrels per day, effective until June 2026, which will counterbalance expected production increases. This strategic adjustment aims at market stabilization, offsetting OPEC+'s earlier-announced supply augmentations set to commence in April.