**Global Oil Prices Rise Amid US Sanctions on Iran and Ukraine War Talks**
On March 24, global oil prices went up due to two main reasons: new US sanctions on Iran and ongoing discussions about a potential ceasefire in Russia’s war with Ukraine.
The price of Brent crude futures rose by 0.5% to $72.52 per barrel, while the price of U.S. West Texas Intermediate crude increased by 0.6% to $68.68.
According to Ole Hansen, head of commodity strategy at Saxo Bank, oil prices are stable because traders are considering new US tariffs, economic risks, and rising oil production from OPEC+ countries. He also said that stronger US sanctions could reduce Iran’s oil exports.
**US Sanctions on Iran and Oil Market**
On March 21, global oil prices went up again after a week of increases. The market was supported by the US sanctions against Iran and the latest plan from OPEC+ to limit production. This increased expectations that there would be less oil available in the market.
The day before, on March 20, Washington imposed new sanctions aimed at reducing Iranian oil exports. For the first time, a Chinese refinery was restricted by these sanctions.
These sanctions could reduce global oil supply by 1 million barrels per day. However, some analysts think that this reduction could be partially offset by increased production from OPEC+ countries.
**OPEC+ Cuts Production**
Last week, OPEC+ announced a new plan to cut production for seven countries. This reduction will exceed the planned increase in production that is set to take place next month.
Currently, OPEC+ maintains a cap on oil production of 5.85 million barrels per day, which is about 5.7% of global supply.