Oil prices continue to rise as the U.S. vows to choke off Iranian crude

USOIL

Oil is trading around the resistance area of $62.50, and if it breaks above this level, we may target the $65.50 area. However, it is likely that the previously mentioned resistance area will limit the upward momentum in today’s trading.

Oil prices saw a significant increase today, with Brent crude reaching $66.52 per barrel, while West Texas Intermediate (WTI) recorded $62.49 per barrel.

This rise can be attributed to several key factors:

1- U.S. sanctions on Iran: The U.S. administration imposed new sanctions on Iranian oil exports, including measures against a Chinese refinery, leading to a reduction in the global oil supply.

2- Production cuts by some OPEC members: Countries such as Iraq and Kazakhstan announced plans to cut production beyond their allocated quotas, contributing to a tighter supply and supporting prices.

3- Increased Russian oil exports to China: Experts expect a rise in Russian oil exports to China in April 2025, reflecting geopolitical trends in the market.

Despite these supportive factors, future price forecasts are still affected by economic challenges. The International Energy Agency (IEA) has downgraded its global oil demand growth forecast for 2025 to 730,000 barrels per day, due to the economic risks stemming from trade wars, especially between the U.S. and China.

Based on these factors, oil is expected to continue fluctuating between geopolitical and economic influences, potentially leading to price volatility in the short term.

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