FX.co ★ Oil Gains for 2nd Day on Supply Concerns

West Texas Intermediate (WTI) crude oil futures experienced an uptick, reaching approximately $62.8 per barrel on Thursday. This marks the second consecutive session of increases, largely driven by concerns regarding potential supply constraints following the U.S. imposition of new sanctions on Iran. The Trump administration announced fresh sanctions on Wednesday, focusing on Iran's oil exports, notably targeting a teapot oil refinery based in China. This move further escalates pressure on Tehran amid the ongoing nuclear discussions. Additional supply worries arose when OPEC+ disclosed that it had received revised production plans from Iraq, Kazakhstan, and other members, indicating intentions to implement deeper output reductions as a countermeasure to exceeding production quotas. Despite this, earlier in the week, organizations such as OPEC, the International Energy Agency (IEA), Goldman Sachs, and JP Morgan revised downwards their forecasts for oil prices and demand growth, citing heightened trade tensions. On the demand front, oil prices garnered some support from optimism surrounding potential U.S.-China trade negotiations, particularly after China signaled its willingness to engage in talks, contingent upon the fulfillment of specific conditions. For the week, oil prices have risen nearly 1%, setting the stage for their first weekly increase this month.