Oil prices stayed near a one-month peak in early Asian trading on Wednesday, following fresh U.S. sanctions on Iran’s oil sector that fueled concerns over tighter supply. Market attention is now turning to the upcoming OPEC+ meeting, where the cartel is expected to maintain current production levels after a series of hikes earlier this year.
Brent crude was quoted at $69.12 per barrel, while West Texas Intermediate (WTI) held at $65.09 per barrel. Both benchmarks had rallied to one-month highs on Tuesday and showed little change on Wednesday.
The U.S. Treasury imposed restrictions on a network of companies and vessels transporting Iranian oil disguised as Iraqi crude, marking the latest round of sanctions after nuclear negotiations with Tehran stalled earlier this year. In parallel, potential U.S.-India trade talks are under scrutiny following Washington’s 50% tariffs on Indian purchases of Russian oil. Supply disruptions are also emerging as Saudi Arabia and Iraq reportedly halted shipments to an Indian refinery.
Looking ahead, investors are awaiting the 7 September OPEC+ meeting for signals on production. While output is likely to remain steady, the cartel may take steps to limit further increases, as prices have largely remained soft throughout the year. U.S. inventory data from the American Petroleum Institute and Energy Information Administration, due later this week, will provide additional insight into fuel demand following the end of the busy summer travel period.
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