Brent crude oil futures rose 3.9% to settle at nearly $68 per barrel on Thursday, booking the second straight session of gains after the US imposed fresh sanctions aimed at curbing Iranian oil exports, stoking fears of tighter global supply.
The sanctions targeted Iran’s oil sector and a China-based refinery, intensifying pressure on Tehran amid ongoing nuclear tensions.
Supply fears were further fueled after OPEC+ said on Wednesday it had received updated plans for Iraq, Kazakhstan and other members to make further output cuts to compensate for pumping above quotas.
Still, OPEC, the IEA, Goldman Sachs, and JP Morgan cut oil price and demand growth forecasts earlier this week, amid escalating trade tensions.
However, slower economic growth in the US and China could dampen future demand, while US crude inventories rose last week even as gasoline and distillate stocks declined.
The benchmark logged it first weekly gain in three weeks, rising about 5% ahead of the Easter holiday break.