WTI holds gains near $62.50 due to concerns over tighter global supply
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WTI price rises amid growing concerns over tighter global supply, driven by new US sanctions on Iran.
The Trump administration announced fresh sanctions aimed at curbing Iran’s Oil exports, including specific measures targeting a China-based "teapot" refinery.
OPEC received revised output plans from Iraq, Kazakhstan, and other producers, detailing further production cuts to offset earlier overproduction.
West Texas Intermediate (WTI) crude Oil price extends its gains for a second consecutive day, trading around $62.40 per barrel during Asian hours on Thursday. The rally is fueled by concerns over tighter global supply following new US sanctions on Iran.
On Wednesday, the Trump administration announced fresh sanctions targeting Iran’s Oil exports, including measures against a China-based "teapot" refinery. The move aims to ramp up pressure on Tehran amid heightened tensions over its nuclear program. According to a statement from the US Treasury Department, the sanctions are intended to discourage Chinese imports of Iranian Oil as President Trump intensifies his “maximum pressure” campaign, seeking to reduce Iran’s Oil exports to zero.
Additionally, the Organization of the Petroleum Exporting Countries (OPEC) suggested it had received updated plans from Iraq, Kazakhstan, and other producers outlining additional output cuts to compensate for previous overproduction.
However, further gains in Oil prices may be limited. Earlier this week, OPEC, the International Energy Agency (IEA), Goldman Sachs, and JP Morgan all revised down their forecasts for oil prices and demand growth, citing growing global trade tensions.
On the demand side, crude prices found some support from optimism surrounding US-China trade negotiations. China signaled a willingness to engage in talks, provided certain key conditions are met. For the week, Oil prices have climbed over 2%, positioning them for their first weekly gain of the month.
Meanwhile, the World Trade Organization (WTO) lowered its forecast for global goods trade, now expecting a 0.2% decline this year, down sharply from its previous projection of a 3.0% expansion in October.
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