Crude oil prices recorded their biggest increase in more than two weeks on Tuesday as the US announced more sanctions against Iranian crude oil, and OPEC+ is making progress in the direction of further delaying the resumption of production.
WTI crude oil futures rose 2.7% to close at around $70 a barrel, the biggest one-day gain since November 18.
OPEC+ representatives revealed that the organization is making progress towards reaching an agreement to delay the recovery of oil production for another three months. The coalition will finalize plans at an online meeting on Thursday. Brent climbs above $73 per barrel
The US announced sanctions against 35 entities and vessels on Tuesday, saying they are playing a key role in the shadow fleet transporting illegal Iranian oil to foreign markets. Oil prices extended their increase after the news was announced.
The possibility that the US will reinstate Trump's first term of severe sanctions against Iran threatens the latter's production. Since Trump left office, Iran's crude oil production has increased by about 1.2 million barrels per day.
Francisco Blanch, head of commodity research at Bank of America, said at a media roundtable that the future trend of oil prices largely depends on sanctions against Iran and Venezuela. Of course, there is also OPEC. If production in these two countries falls, Brent may rise to the $80 range.
WTI crude oil futures for January delivery rose 2.7%, and the settlement price was $69.94 per barrel;
Brent crude rose 2.5% to $73.62 a barrel in February.