West Texas Intermediate (WTI) crude oil prices rose slightly on Friday after a more than 1% decline in the previous session. Despite the uptick, WTI remains on track for its eighth consecutive weekly decline, trading around $66.70 per barrel during Asian trading hours. The modest recovery follows fresh US sanctions on Iranian oil and shipping, offering some support to prices.
On Thursday, the US government imposed new sanctions targeting Iran’s oil minister as part of its ongoing “maximum pressure” campaign against Tehran. The measures also extend to several Hong Kong-flagged vessels involved in Iran’s shadow fleet, which helps conceal oil shipments, according to the US Treasury Department.
However, broader economic concerns continue to weigh on crude oil. Fears of weakening global demand persist, especially after US President Donald Trump threatened a 200% tariff on all European wines and champagne. The announcement, made during Thursday’s early US session, rattled global markets and added to existing trade tensions.
Adding to the uncertainty, diplomatic efforts for a ceasefire between Russia and Ukraine remain in flux. Russian President Vladimir Putin stated on Thursday that Moscow supports a US-brokered ceasefire proposal but insists that it must lead to lasting peace and address the root causes of the conflict. European Union (EU) foreign policy chief Kaja Kallas suggested that Russia may accept the ceasefire proposal but with specific conditions, according to Reuters.
Meanwhile, the International Energy Agency (IEA) has warned that a growing supply surplus could further pressure oil prices. The agency noted that trade tensions are weighing on demand, while OPEC+ continues to increase production. The IEA projects that global oil supply will exceed demand by approximately 600,000 barrels per day (bpd) this year, driven primarily by US-led output growth. Additionally, the IEA revised its demand growth forecast downward to 1.03 million bpd, 70,000 bpd lower than last month’s estimate.
