Oil prices rise amid US sanctions against Iran and ceasefire talks in Ukraine
Kyiv • UNN
Oil prices are rising due to US sanctions against Iran and possible changes in supply due to negotiations between Ukraine and Russia. Brent crude futures rose to $72.2 per barrel.
There is a slight increase in oil prices as the market assesses the impact of new US sanctions against Iran and possible changes in supply due to ceasefire talks between Ukraine and Russia. This is reported by Reuters, writes UNN.
Details
As of 07:35 GMT (09:35 Kyiv time) on March 24, Brent crude futures rose by 4 cents to $72.2 per barrel, and US WTI rose by 8 cents (0.1%) to $68.36. Earlier today, prices have already fallen. Both benchmarks rose on Friday and recorded their second consecutive weekly increase amid new US sanctions on Iran and the latest production plan from the OPEC+ group of producers, which strengthened expectations of supply cuts.
According to IG market strategist Yeap Jun Rong, market sentiment on oil prices has improved recently, likely driven by a technical recovery from previous oversold conditions, increased supply risks stemming from US sanctions on Iranian exports, and some optimism that the relevant US duties may prove less stringent than feared.
Iranian oil supplies to China are expected to decline in the near future following the introduction of new US sanctions on a private refinery and tankers, leading to an increase in transportation costs.
However, traders said they expect buyers to find workarounds to maintain at least some of the supply volumes.
However, the broader outlook for supply and demand remains mixed. Negotiations between Ukraine and Russia on a ceasefire raise the prospect of increased Russian exports if a final settlement is reached, while increased OPEC+ production as early as April indicates a further increase in supplies
Expectations of progress in peace talks between Russia and Ukraine and a possible easing of US sanctions on Russian oil put pressure on prices
"However, investors are refraining from taking large positions, assessing future OPEC+ production trends after April," he added.
Reminder
Earlier, Reuters wrote that on March 18, oil prices rose slightly, boosted by instability in the Middle East, as well as stimulus plans and data from China.
