Oil prices edge higher on Monday in volatile trading as markets assess the effects of fresh U.S. sanctions on Iranian exports and potential supply shifts due to Ukraine war negotiations.
Brent crude climbs 32 cents, reaching $72.48 per barrel, while U.S. West Texas Intermediate gains 34 cents, trading at $68.62.
The oil market remains within a tight range, balancing the impact of new U.S. trade restrictions, economic slowdown fears, and an expected increase in OPEC+ production starting next month. Both Brent and WTI crude close higher on Friday, marking a second straight week of gains as global supply concerns drive market sentiment.
The latest U.S. sanctions, announced on Thursday, aim to curb Iranian oil exports, with measures extending to a Chinese refinery processing Iranian crude. Tighter sanctions could remove up to 1 million barrels per day from global markets, though OPEC+ production increases may compensate for the loss.
The possibility of an expanded Russian crude supply due to Ukraine peace talks adds further complexity to market expectations. Global oil traders closely monitor shifting supply dynamics as geopolitical tensions and regulatory actions continue to shape crude oil prices.
Market watchers anticipate further price fluctuations as the oil sector reacts to developments in sanctions enforcement and diplomatic negotiations. OPEC+ nations remain a key factor in global supply adjustments, with planned production increases potentially stabilizing oil availability.
Despite ongoing uncertainties, oil prices maintain an upward trajectory, reflecting investor sentiment on supply risks and policy changes.
