Oil Prices Post Weekly Gains for First Time in 3 Weeks

Global oil prices rose more than 3% during trading on Thursday, supported by hopes of a trade agreement between the United States and the European Union, along with the imposition of new US sanctions targeting Iranian oil exports, which increased concerns about supply shortages in global markets.

Brent crude futures rose 3.2% to settle at $67.96 a barrel, while US crude rose 3.54% to close at $64.68 a barrel.

Latest Oil Prices:

WTI Crude $64.68 +3.54%

Brent Crude $67.96 +3.20%

Murban Crude $69.41 +3.01%

Louisiana Light $65.03 +1.28%

Bonny Light $78.62 -2.84%

Mars US •$72.90 -1.51%

Gasoline $2.099 +2.71%

Natural Gas $3.245 -0.06%

In terms of weekly performance, both crude oils posted gains of nearly 5%, their first weekly gains in three weeks, amid investor optimism about easing trade tensions and the potential for prices to be supported by reduced global supply.

These gains coincide with markets preparing for the Easter holiday, making Thursday the final settlement day of the week, amid expectations of lower trading volumes during the holiday.

US President Donald Trump, during his meeting with Italian Prime Minister Giorgia Meloni, said he was optimistic about resolving trade disputes with the European Union, adding, "We won't have much trouble reaching an agreement with Europe or others, because we have what everyone wants."

These statements reinforce expectations that the negative impact of the recently imposed US tariffs, which have raised concerns about a decline in global energy demand, may be mitigated. “A deal with Europe could limit the demand destruction associated with these tariffs,” said Bob Yaeger, director of energy futures at Mizuho.

Meanwhile, the United States continued to tighten pressure on Iran by imposing new sanctions targeting small Chinese oil companies and refineries known as “teapot refineries,” a term used in the industry to refer to small, independent refineries with limited technical capabilities.

“These sanctions are very comprehensive, and they focus on Chinese teapot refineries,” said John Kilduff, a partner at Again Capital. “They represent a potential loss of supply to the global market.”

Washington also issued additional sanctions targeting companies and vessels believed to be used to facilitate Iranian oil shipments to China, part of Iran’s so-called “shadow fleet,” which Tehran has long used to circumvent restrictions on its oil exports. 

The consulting firm Gelber & Associates stated in an analytical note that "the United States continues to impose strict sanctions on Iran and potential buyers of its oil, while OPEC+ affirms its commitment to maintaining market stability by controlling production, with the flexibility to reduce supply if necessary."

In a related context, OPEC announced that it had received updated plans from Iraq, Kazakhstan, and other countries pledging to reduce production to compensate for exceeding previously agreed quotas.

However, despite these supportive moves, several global institutions, including the International Energy Agency and major banks such as Goldman Sachs and JP Morgan, have lowered their forecasts for oil prices and demand growth, in light of the ongoing impact of US tariffs and retaliatory measures that have disrupted global trade.

While geopolitical risks and economic pressures are increasing, the oil market remains in a state of constant anticipation of developments in trade negotiations and US sanctions, which will have a direct impact on future energy prices in the second half of the year.