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Economy

Oil up on concerns over Iran sanctions, strong refining margins

Date: Feb 25, 2025

Oil prices rose for a second day on Tuesday as fresh United States (US) sanctions imposed on Middle Eastern producer Iran increased concerns supply might tighten and as global refining margins remained strong.

Brent crude futures rose 0.2%, to $74.93 a barrel by 09h24 CAT. US West Texas Intermediate crude futures climbed 0.3%, to $70.93 a barrel.

Both contracts gained in Monday's session after a $2 drop last Friday.

"In the short term, I continue to think crude oil is looking for a base. The fresh US sanctions announced on Iran overnight will likely assist with this as will the Iraqi Oil Minister's commitment to rein in its oversupply," said IG Market Analyst Tony Sycamore.

The US on Monday put new sanctions on more than 30 brokers, tanker operators, and shipping companies for their role in transporting Iranian oil. President Donald Trump has said he wants to bring Iran's crude exports to zero.

Iran is the third-largest producer in the Organisation of the Petroleum Exporting Countries (OPEC), pumping 3.2 million barrels per day in January, according to a Reuters survey of OPEC output.

--Reuters--