Brent moves higher as US slams Iran with more sanctions
The front-month ICE Brent contract has moved $1.15/bbl higher on the day, to trade at $66.40/bbl at 09.00 GMT.
IMAGE: Oil barrels on bar graphs. Getty Images
Upward pressure:
Brent crude’s price moved higher after the US administration announced stricter sanctions on Chinese buyers of Iranian crude oil.
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned several companies and vessels responsible for facilitating Iranian oil shipments to China, which are a part of Iran’s shadow fleet.
The news was aided by further supply-side issues as OPEC revealed revised compensation plans from seven members, aiming to make deeper cuts in the upcoming months through June 2026 for previous overproduction.
“Iraq said it will cut its oil exports this month after it faces pressure to adhere to its OPEC+ production target,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.
The seven OPEC+ members will collectively cut production by a total of 4.6 million b/d through June 2026, the coalition has announced.
Downward pressure:
Brent’s price felt some downward pressure after the US Energy Information Administration (EIA) reported a small rise in US crude stocks.
Commercial US crude oil inventories gained by 515,000 bbls to touch 443 million bbls for the week ending 11 April, according to data from the EIA.
A buildup in inventories typically signals weaker oil demand, which can put downward pressure on Brent's price.
Aparupa Mazumder
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