Oil prices rise on Iran sanctions and strong refining margins
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U.S. Sanctions on Iran Fuel Supply Concerns
Fresh U.S. sanctions on more than 30 brokers, tanker operators, and shipping companies transporting Iranian oil have raised fears of tighter global supply.
President Donald Trump aims to cut Iranian crude exports to zero, adding pressure to the market.
Iran, the third-largest OPEC producer, pumped 3.2 million barrels per day in January, according to Reuters data.
Refining Margins Provide Support
Global refining margins remain strong, driven by robust demand for fuel oil and distillates.
Margins for refineries in Singapore processing Dubai crude have increased to $3.50 per barrel in February, compared to $2.30 per barrel last month, according to LSEG data.
Uncertain Demand Outlook Caps Gains
Concerns over slowing economic indicators from China weigh on bullish momentum.
Investors are awaiting China’s policy announcements in mid-March, which could include new stimulus measures and a 2025 growth target.
Tariff Uncertainty Adds Bearish Pressure
President Trump reaffirmed that tariffs on Canadian and Mexican imports will take effect on March 4, despite efforts by both countries to negotiate exemptions.
Analysts warn that these tariffs could weaken global oil demand growth, further limiting price gains.
Market Outlook
While supply concerns from U.S. sanctions and strong refining margins are supporting prices, uncertainty around China's economic policies and trade tariffs could keep oil markets volatile in the coming weeks.
Fresh U.S. sanctions on more than 30 brokers, tanker operators, and shipping companies transporting Iranian oil have raised fears of tighter global supply.
President Donald Trump aims to cut Iranian crude exports to zero, adding pressure to the market.
Iran, the third-largest OPEC producer, pumped 3.2 million barrels per day in January, according to Reuters data.
Refining Margins Provide Support
Global refining margins remain strong, driven by robust demand for fuel oil and distillates.
Margins for refineries in Singapore processing Dubai crude have increased to $3.50 per barrel in February, compared to $2.30 per barrel last month, according to LSEG data.
Uncertain Demand Outlook Caps Gains
Concerns over slowing economic indicators from China weigh on bullish momentum.
Investors are awaiting China’s policy announcements in mid-March, which could include new stimulus measures and a 2025 growth target.
Tariff Uncertainty Adds Bearish Pressure
President Trump reaffirmed that tariffs on Canadian and Mexican imports will take effect on March 4, despite efforts by both countries to negotiate exemptions.
Analysts warn that these tariffs could weaken global oil demand growth, further limiting price gains.
Market Outlook
While supply concerns from U.S. sanctions and strong refining margins are supporting prices, uncertainty around China's economic policies and trade tariffs could keep oil markets volatile in the coming weeks.