Oil prices extended gains on Thursday as tighter supply prospects emerged following new US sanctions targeting Iranian oil exports and additional output cuts from some OPEC members. Brent crude rose 56 cents to $66.41 a barrel, while US West Texas Intermediate (WTI) gained 65 cents to $63.12. Both benchmarks closed 2 per cent higher on Wednesday, reaching their highest levels since early April, and are on course for their first weekly gain in three weeks. The upward momentum was driven by a combination of short-covering, a weaker US dollar, and Washington's renewed pressure on Tehran. The US sanctions included measures against a Chinese "teapot" refinery and come amid heightened tensions over Iran's nuclear programme. OPEC+ said it received new plans from Iraq, Kazakhstan, and others to cut production further after previously exceeding quotas. Analysts noted the announcements helped reinforce a bullish tone in the market, despite scepticism over compliance and the limited impact of Iranian output. Additional support came from US inventory data, which showed sharp declines in gasoline and distillate stocks and a smaller-than-expected build in crude inventories. However, broader demand concerns persist as major institutions, including OPEC+ and the International Energy Agency (IEA), downgraded oil demand forecasts. The World Trade Organization (WTO) also revised its global trade growth outlook from 3.0 per cent to a 0.2 per cent contraction. Attribution: Reuters Subediting: M. S. Salama
