Oil News: OPEC+ Cuts and Iran Sanctions Tighten Global Crude Supply

Crude Oil Prices Forecast: WTI Eyes Key Resistance as Supply Risks Mount

Light crude oil futures edged higher on Friday, climbing to a weekly high of $68.65 and signaling a test of the short-term pivot at $68.97. A breakout above this level could drive momentum toward critical technical markers, including the 200-day moving average at $70.10 and the 50-day moving average at $71.01. On the downside, support is now seen at $66.83, with the market preparing to log its second straight weekly gain.

At 09:34 GMT, Light crude oil futures are trading $68.19, up $0.12 or +0.18%.

U.S. Sanctions on Iran Drive Supply Tightening Narrative

Traders responded to escalating geopolitical tensions after the U.S. Treasury issued fresh sanctions targeting Iran’s oil exports. For the first time, these measures included an independent Chinese refiner, intensifying Washington’s efforts to restrict Iranian crude flows. Analysts at ANZ Bank projected a potential drop of up to 1 million barrels per day in Iranian exports, a significant cut given Kpler’s estimate of February volumes above 1.8 million bpd.

The sanctions announcement sparked Thursday’s rally and reinforced bullish sentiment that tighter enforcement could meaningfully constrict global supply. This marks the fourth round of U.S. actions against Iran since renewed pledges to apply “maximum pressure” on Tehran’s energy exports.

OPEC+ Output Strategy Offers Mixed Signals for Supply Outlook

In parallel, the latest OPEC+ strategy added layers of complexity to the oil supply narrative. The group announced that seven members would implement additional monthly output cuts of 189,000 to 435,000 bpd to offset previous overproduction, extending through June 2026. This plan comes even as eight members prepare to raise output by 138,000 bpd in April, reversing portions of prior cuts.

While the commitment to compensate for overproduction offers a tightening signal, analysts remain cautious. ING noted that several producers have consistently exceeded their quotas, casting doubt on the group’s ability to fully deliver on pledged reductions.

Market Outlook: Bullish Near-Term Bias Holds

With U.S. sanctions amplifying risks to Iranian supply and OPEC+ signaling further curbs—albeit with credibility concerns—the near-term crude oil outlook leans bullish. Technical resistance levels are within reach, and sustained upward momentum could be reinforced by geopolitical and structural supply constraints. However, the market’s ability to hold above support at $66.83 will be critical to maintaining the current uptrend. The response to the 200-day moving average at $70.10 will set the near-term tone.

More Information in our Economic Calendar.