Oil prices extended gains on expectations of an impending OPEC+ production deal and mounting supply concerns stemming from Iran sanctions. Market sentiment was bolstered by reports of productive talks among OPEC+ members, with potential agreements aimed at curbing output cuts in a bid to stabilize global prices. Brent crude climbed to $88 per barrel, marking one of its highest levels in months.
The geopolitical landscape has also tightened supply forecasts. Stricter U.S. sanctions on Iranian oil exports have significantly reduced Iran’s output, amplifying concerns about the global oil market’s balance. Analysts suggest this dual factor of coordinated production management and reduced availability from key exporters could sustain the rally in oil prices, presenting a potential headache for energy-dependent economies.
