Crude oil rose more than 1% on sanctions, OPEC+ in focus

Oil prices climbed on Tuesday as fresh US sanctions curbing Iran’s crude exports tightened supply prospects ahead of this weekend’s OPEC+ meeting.

Brent settled up 99 cents, or 1.45%, at $69.14 a barrel.

WTI gained $1.58, or 2.47%, to $65.59. US futures were closed on Monday for the Labour Day holiday.

Washington targeted a network of shippers accused of disguising Iranian oil as Iraqi, a move analysts said could constrain grey-market flows and reinforce near-term price support.

Attention now turns to Sunday’s OPEC+ meeting, where members, including Saudi Arabia and Russia, are expected to keep the remaining voluntary supply cuts in place. With forecasts of a Q4 surplus, the group is likely to wait for post-summer demand signals before making changes.

Traders also expect US inventory data to show another draw, though with the summer driving season now over, seasonal demand weakness remains a risk.

Written: Aiman Haikal