Oil Rises on Iran Crude Sanctions, OPEC+ Output Deal Progress
Oil rose as the US imposed more sanctions targeting Iranian crude and OPEC+ made progress on a deal to keep output off the market.
West Texas Intermediate advanced more than 2% to top $69 a barrel as OPEC+ delegates said the group is firming up an agreement to delay its oil-production revival by another three months, reducing some traders’ speculation that the cartel might restore output. The alliance is due to finalize plans at an online meeting on Thursday.
Crude extended gains after the US Treasury sanctioned 35 entities and vessels for their role in transporting illicit Iranian oil to foreign markets. In Asia, China’s top leaders plan to map out economic targets and stimulus for 2025 at a major gathering next week.
Still, gauges of implied volatility for crude have sunk to the lowest in about two months as futures remain stuck in a range of about $6 since mid-October.
In Brazil, one of the main engines of non-OPEC supply growth, output continued to falter. Oil production was down about 6% from a month earlier and 8% on a year earlier, according to data from the nation’s oil regulator.
WTI for January delivery rose 2.3% to $69.70 a barrel at 10:58 a.m. in New York.
Brent for February settlement climbed 2.2% to $73.40 a barrel.
Source : Bloomberg
