NEW YORK- Oil prices settled higher on Friday and recorded a second consecutive weekly gain as fresh US sanctions on Iran and the latest output plan from the OPEC+ producer group raised expectations of tighter supply.
Brent crude futures rose 16 cents, or 0.2 percent, to settle at $72.16 a barrel. US West Texas Intermediate crude futures rose 21 cents, or 0.3 percent, to $68.28.
On a weekly basis, Brent rose 2.1 percent and WTI about 1.6 percent, their biggest gains since the first week of the year.
On Thursday, the US Treasury announced new Iran-related sanctions, which for the first time targeted an independent Chinese refiner among other entities and vessels involved in supplying Iranian crude oil to China.
That probably sent a message to the market that Chinese companies, the largest buyers of Iranian oil, are not immune to sanctions pressure from the US , said Scott Shelton, energy analyst at TP ICAP.
It was Washington’s fourth round of sanctions against Tehran since President Donald Trump in February promised “maximum pressure” and pledged to drive Iran’s oil exports down to zero.
The tightening US sanctions regime will probably keep some market participants involved in shipping Iranian crude more cautious going forward, UBS analyst Giovanni Staunovo said.
