By Colleen Howe
BEIJING (Reuters) – Oil prices rose for a second day on Tuesday as the U.S. imposed fresh sanctions on Middle Eastern producer Iran that increased concerns supply might tighten.
Brent crude futures rose 38 cents, or 0.51%, to $75.16 a barrel by 0217 GMT. U.S. West Texas Intermediate crude futures gained 43 cents, or 0.61%, to $71.13 a barrel. Both contracts gained in Monday’s session after a $2 drop on Friday.
WTI is looking for a base in the support region between $65 and $70 a barrel, Tony Sycamore, market analyst with IG, said in a note. “Provided it holds above here, a recovery back will follow.”
The U.S. on Monday put new sanctions on more than 30 brokers, tanker operators, and shipping companies for their role in transporting Iranian oil. President Donald Trump has said he wants to bring Iran’s crude exports to zero.
Iran is the third-largest producer in the Organization of the Petroleum Exporting Countries, pumping 3.2 million barrels per day in January, according to a Reuters survey of OPEC output.
But gains were capped by the uncertain demand outlook.
U.S. President Donald Trump said on Monday that tariffs against Canadian and Mexican imports scheduled to start on March 4 are “on time and on schedule” despite efforts by the two trading partners to address Trump’s concerns about border security and fentanyl. Analysts say the tariffs would be bearish for global oil demand growth.
In Europe, Ukraine hosted European leaders to mark the three-year anniversary of Moscow’s invasion, but U.S. officials stayed away in an illustration of President Trump’s move closer to Russia.
The market has viewed Trump’s warming relations with Moscow as a potential signal of an easing in the sanctions on Russia, which would add to global oil supply.
(Reporting by Colleen Howe; Editing by Christian Schmollinger)
