Crude Oil Prices Higher

Oil prices edged higher on Friday in response to the possibility of new sanctions on Iran after US President Donald Trump said “nothing is off the table” in dealing with the country after its test launch of a missile.

Comments by Russian Energy Minister Alexander Novak that oil producers had cut their output as agreed under a deal with OPEC, also helped to support prices, analysts said, Reuters reported.

Brent crude futures were up 30 cents to $56.86 a barrel, after settling 24 cents lower at $56.56 in the previous session. Brent was on track to gain more than 2% on the week, its first significant weekly rise this year.

Front month US West Texas Intermediate crude futures climbed 25 cents to $53.79 a barrel, after ending 34 cents down on Thursday. For the week, the contract is up a little over 1%.

Reuters reported on Thursday that the Trump administration is prepared to roll out new measures against more than two dozen Iranian targets following Tehran’s ballistic missile test, according to sources familiar with the matter.

Russia’s Novak said that Russian companies might cut oil production more quickly than required by its deal with Organization of Petroleum Exporting Countries late last year. 

He said that 1.4 million barrels per day was cut from global oil output last month as part of the deal. But analysts said oil’s advance could run out of steam quickly.

 PVM Oil Associates noted the market “is sandwiched between supportive OPEC-led output cuts and the bearish impact of a rebound in US crude production.”