Fears that new US sanctions on Iran could disrupt global oil supply have pushed prices higher.
The international benchmark, Brent crude, increased by around 0.33%, trading at $65.56 per barrel at 10.05 am local time (0705GMT), down from $65.34 at the previous session's close.
US benchmark West Texas Intermediate (WTI) increased by 0.41%, settling at $62.22 per barrel, compared to its prior session close of $61.96.
Oil prices rose as fresh US sanctions on Iran heightened concerns over global supply. The US State Department announced punitive action against China-based 'Shandong Shengxing Chemical Co. Ltd.', citing its ties to Iran’s oil sector.
The refinery allegedly purchased over $1 billion worth of crude oil from Iran. The statement also noted sanctions on multiple companies and vessels accused of aiding Iran’s so-called “shadow fleet” in shipping oil to China.
The US emphasized full enforcement of all sanctions imposed under the Trump-era 'maximum pressure' policy. ' As long as Iran attempts to generate oil revenues to fund its destabilizing activities, the United States will hold both Iran and all its partners in sanctions evasion accountable.' the statement said.
Analysts suggest the timing amid ongoing nuclear negotiations indicates Washington’s intent to tighten pressure on Tehran and aim for a complete halt to its oil exports. Market expectations that this could limit global supply are contributing to the upward price trend.
However, gains were capped by signs of weakening demand in the US. The Energy Information Administration (EIA) reported a surprise build in commercial crude stocks, which rose by 500,000 barrels to 442.9 million last week. Analysts had expected a 1.68 million-barrel draw.
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr