Oil prices climbed this week as OPEC+ committed to controlling supply. This is while Trump continued his efforts to choke Iran’s oil industry.
Buoyed by Trump’s continued pressure on Iran and OPEC+’s renewed efforts to send prices higher ahead of its April. This is before the meeting by committing to additional overcompensation plans. ICE Brent is creeping back closer to the $75 per barrel mark, posting its second weekly gain. The oil markets have become desensitized to US Federal Reserve meeting. With the awkward implementation of the 30-day ban on energy strikes between Russia and Ukraine, there might be further upside ahead for crude.
OPEC+ Rolls Out New Compensation Plans.
Confronted with continuous overproduction by its leading members, OPEC+ issued a new compensation plan with voluntary cuts lasting until June 2026, seeing 300-400,000 b/d output curtailments over the summer months with Iraq forced to cut the most.
US Sanctions First Chinese Teapot Refiner.
Ramping up the pressure on buyers of Iranian oil, the US Treasury Department announced new sanctions on entities linked to Iranian oil trade, adding a Chinese refiner (Shandong-based Shouguang Luqing Petrochemical) to the SDN list for the first time ever.
Oil Traders Become the New Drillers.
Global trading house Vitol agreed to buy stakes in West African oil and gas assets operated by Italy’s oil major ENI (BIT:ENI) for $1.65 billion, taking a 30% minority stake in the largest oil discovery of 2021, the Baleine field in Ivory Coast, as well as in Congolese LNG assets.
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Source: Oil Price
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