Oil prices maintained their recent gains as markets weighed potential US sanctions and an updated global demand outlook from the International Energy Agency (IEA). Discussions in Washington about tighter measures on Iran and Venezuela added pressure on supply concerns, keeping investors attentive. Meanwhile, the IEA’s forecast suggested robust oil demand through 2024, further supporting market optimism.
The possibility of US sanctions could further constrain global supplies, particularly as OPEC+ continues its production cuts. Analysts believe these geopolitical moves, combined with resilient demand, are stabilizing prices after weeks of volatility. Brent crude hovered near $80 a barrel, while West Texas Intermediate (WTI) traded above $75.
Traders are also assessing the broader economic backdrop, as central bank policies and inflation fears influence energy markets. Despite recessionary risks in some regions, the IEA’s report reinforced confidence in sustained energy consumption, particularly in emerging markets. This sentiment has provided a floor for oil prices even amid mixed macroeconomic signals.
The oil market’s attention remains on geopolitical tensions and demand forecasts, which are shaping the outlook for 2024. As supply constraints and consumption trends collide, prices are likely to remain sensitive to political and economic developments in the weeks ahead.
