OPEC+ mulls supply delay as US tightens sanctions on Iran
Oil prices on the New York commodities exchange saw their strongest increase in over two weeks on Tuesday and continue their upward trend. Investors are anticipating a decision regarding the production plans of OPEC+ member countries, which are set to hold a virtual meeting on Thursday, brokers report.
A barrel of West Texas Intermediate oil for January delivery is priced at CAD 99 on the NYMEX in New York, representing an increase of 0.29%. Brent oil is priced at CAD 52.50 per barrel, after gaining 0.31%.
The meeting of OPEC+ countries, focusing on the group's supply policy, is approaching. Delegates to Thursday's meeting have already suggested that discussions are underway about delaying larger oil supplies.
For now, OPEC+ has made strides toward signing an agreement that aims to delay the resumption of larger supplies by another three months.
From January 2025, an increase in oil supply from OPEC+ by 180,000 barrels per day is planned. The group has been limiting these supplies since the end of 2022 to maintain higher oil prices in global markets.
- A delay of three months is the main proposal in these talks and it hasn't drawn any opposition so far, according to anonymous delegates at the alliance meeting.
US sanctions on Iranian oil supplies
Meanwhile, the US has imposed additional sanctions on Iranian oil supplies—on 35 entities and ships that play a key role in the "secret" fleet illegally transporting Iranian oil to foreign markets.
The US State Department stated that the new wave of sanctions targets tankers and ship management companies that are part of a network transporting Iranian oil abroad using falsified documentation, manipulating ship tracking systems, and frequently changing ship names and flags.
Entities managing the ships affected by US sanctions are based in the United Arab Emirates, China, India, Hong Kong, the Marshall Islands, and Panama, among others.
