Oil prices climbed as markets weighed shifting supply signals and geopolitics

Oil prices edged higher on Friday, 7 March 2025, as investors navigated shifting supply signals and renewed geopolitical tensions. Market sentiment remained fluid, shaped by OPEC+ output considerations and potential US measures targeting Russia and Iran.

Brent crude rose 90 cents, or 1.3%, to settle at $70.36 a barrel.

WTI gained 68 cents, or 1.02%, closing at $67.04 a barrel.

Fears of increased production were tempered after an OPEC+ member indicated the group might reconsider output levels should the planned April hike severely destabilise markets. The planned increase, estimated at 138,000 barrels per day, had previously raised concerns over possible supply shifts.

Meanwhile, reports suggested the US mulled over stricter enforcement against Iranian crude exports. Proposals under consideration included inspecting Iranian oil tankers at sea—an effort to curtail Iran’s energy trade and financial inflows.

However, investors remained on edge as the US government signalled intentions to intensify efforts to pressure Russia into de-escalating its offensive in Ukraine. Considerations included tighter restrictions on the Russian economy, with sanctions on banking and tariffs on exports under discussion.

A weaker US dollar also supported the gain in commodity market. 

Written by: Derek Yong