OPEC+ poised to extend supply cuts amid US sanctions on Iran
Oil prices on the New York commodities exchange recorded their strongest increase in over two weeks on Tuesday and continue to rise. Investors are awaiting a decision regarding the production plans of OPEC+ member countries, who will hold a virtual meeting on Thursday, brokers report.
A barrel of West Texas Intermediate oil for January delivery costs £55.50 on the NYMEX in New York, an increase of 0.29%. Brent is priced at £58.50 per barrel, after a gain of 0.31%.
The meeting of OPEC+ countries regarding the supply policy of this group of nations is approaching. Delegates to Thursday's meeting have already indicated earlier that discussions are ongoing about delaying larger oil supplies.
For now, OPEC+ has made progress towards signing an agreement aimed at further delaying the resumption of larger supplies by another three months.
From January 2025, an increase in oil supply from OPEC+ by 180,000 barrels per day was planned, and the group has been limiting these supplies since the end of 2022 to maintain higher oil prices on global markets.
- A delay of three months is the main proposal in these talks and it hasn't drawn any opposition so far, indicate anonymous delegates at the alliance meeting.
US sanctions on Iranian oil supplies
Meanwhile, the US has imposed additional sanctions on Iranian oil supplies - on 35 entities and ships that play a key role in the "secret" fleet illegally transporting Iranian oil to foreign markets.
The US State Department stated that the new wave of sanctions targets tankers and ship management companies that are part of a network transporting Iranian oil abroad using false documentation, manipulating ship tracking systems, and constantly changing ship names and flags.
Entities managing the ships affected by US sanctions are based in the United Arab Emirates, China, India, Hong Kong, the Marshall Islands, and Panama, among others.
