On Friday, oil prices rallied after the US expanded sanctions against Iran, the second largest OPEC oil producer. As of 15:24 GMT, April Brent crudeon London's ICE Futures exchange rose above $57.15 a barrel. March WTI crude rose to $53.92 a barrel on the NYMEX.
Since the start of the week, WTI price rose by 2.9%, while Brent crude increased by 2.6%.
Last week, the US Treasury Department imposed addition sanctions against Iran, expanding the additional sanction targets by 13 individuals and 12 companies. Those targeted include various agents, companies and associates involved in procuring ballistic missile technology for Iran.
Meanwhile, the OPEC countries cut oil production by 840,000 barrels a day, or by about 60% of the planned volume.
According to Timothy Evans, energy futures analyst at Citi Futures, the cartel’s continued implementation of the agreement on production cut could bring the oil market to a 900,000-barrel-a-day deficit by the third quarter.
