Easy Trading Tips – Crude oil prices were on track for their third consecutive weekly increase on Friday as escalating U.S. sanctions on Venezuela and Iran fueled concerns over supply disruptions. However, market sentiment remained cautious due to lingering fears that Washington’s trade policies could dampen global demand.
As of 0949 GMT, Brent crude futures edged up by 8 cents, or 0.1%, to $74.11 per barrel, extending an eight-day rally, the longest since May 2022. Similarly, U.S. West Texas Intermediate (WTI) crude climbed by 5 cents, also 0.1%, reaching $69.97 per barrel.
Both benchmarks have risen approximately 2.5% this week and have gained around 7% since hitting multi-month lows in early March.
According to market analysts at BMI, the surge in crude prices has been primarily driven by evolving global sanctions. Earlier this week, U.S. President Donald Trump introduced new 25% tariffs on prospective buyers of Venezuelan crude, shortly after implementing sanctions on Chinese imports of Iranian oil.
These measures have disrupted trade flows, with shipments of Venezuelan crude to its top buyer, China, coming to a standstill. Additionally, sources indicate that India’s Reliance Industries (NSE: RELI), which operates the world’s largest refining complex, is preparing to halt imports of Venezuelan oil.
“With the potential decline in Venezuelan crude exports due to secondary sanctions and the risk of similar actions targeting Iranian barrels, the market is experiencing a perceived tightening in supply,” explained June Goh, senior oil analyst at Sparta Commodities.
Adding to bullish sentiment, U.S. demand signals showed improvement as crude inventories declined more than anticipated. Data from the Energy Information Administration revealed that U.S. crude stockpiles fell by 3.3 million barrels to 433.6 million barrels for the week ending March 21, significantly exceeding analysts’ projections of a 956,000-barrel draw.
Despite the upward momentum, oil prices faced some resistance as risk assets broadly declined on Friday. The latest tariff measures introduced by Trump intensified investor concerns about a full-scale trade war, leading to cautious trading.
Given the current volatility, analysts caution against expectations of sustained price surges.
“While market uncertainties remain high, our forecast for Brent crude stands at an average of $76 per barrel in 2025, down from an expected $80 per barrel in 2024,” BMI analysts noted in their commentary.