Oil prices advanced more than 7 percent in the last three weeks as fresh U.S. sanctions on Venezuela and Iran, combined with falling U.S. crude inventories, tightened global supply conditions.
Brent crude traded at $73.89 per barrel on Friday, while West Texas Intermediate (WTI) settled at $69.80 per barrel.
Both benchmarks have posted three consecutive weekly gains, recovering from multi-month lows recorded in early March.
The recent rally has been largely driven by supply constraints following the U.S. decision to impose 25 percent tariffs on countries purchasing Venezuelan crude.
The action disrupted Venezuelan oil shipments and affected China and India, two of the country’s key customers.
Also, restrictions targeting Iranian oil have intensified market tightness.
Market analysts noted that the potential decline in crude exports from Venezuela and the possibility of reduced Iranian supply have contributed to the sustained price recovery.
India’s Reliance Industries, the operator of the world’s largest refining complex, has already suspended Venezuelan oil imports following the U.S. directive.
In the U.S., crude inventories declined by 3.3 million barrels in the week ending March 21, according to data released by the Energy Information Administration.
The decline exceeded market expectations of a 956,000-barrel draw, indicating stronger-than-anticipated demand in the world’s largest oil-consuming nation.
Despite the upward momentum, market sentiment remains cautious.
Analysts argued that while current sanctions are supporting higher prices, the broader outlook is uncertain due to the risk of slower global economic growth stemming from protectionist trade policies.
BMI, in its latest market report, maintained its forecast for Brent crude to average $76 per barrel in 2025, down from $80 per barrel in 2024.
