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Oil Heads Towards Second Consecutive Weekly Gain on Supply Concerns 

An Oil refinery is seen from Maracaibo, Zulia State, Venezuela on March 19, 2025. (AFP)
An Oil refinery is seen from Maracaibo, Zulia State, Venezuela on March 19, 2025. (AFP)
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Oil Heads Towards Second Consecutive Weekly Gain on Supply Concerns 

An Oil refinery is seen from Maracaibo, Zulia State, Venezuela on March 19, 2025. (AFP)
An Oil refinery is seen from Maracaibo, Zulia State, Venezuela on March 19, 2025. (AFP)

Oil prices rose on Friday and were heading for a second consecutive weekly gain as fresh US sanctions on Iran and the latest output plan from the OPEC+ producer group raised expectations of tighter supply.

Brent crude futures were up 12 cents, or 0.2%, at $72.12 a barrel by 0850 GMT. US West Texas Intermediate crude futures rose 15 cents, also 0.2%, to $68.22.

On a weekly basis, both Brent and WTI were on track for gains of more than 1%, their biggest since the first week of the year.

The United States Treasury on Thursday announced new Iran-related sanctions, which for the first time targeted an independent Chinese refiner among other entities and vessels involved in supplying Iranian crude oil to China.

New US sanctions against Iran's oil exports triggered Thursday's rally in oil prices along with the OPEC+ pledge to compensate for overproduction, said PVM analyst Tamas Varga.

Thursday's announcement marked Washington's fourth round of sanctions against Iran since US President Donald Trump in February promised "maximum pressure" on Tehran and pledged to drive the country's oil exports to zero.

Analysts at ANZ Bank said they expect a 1 million barrels per day (bpd) reduction in Iranian crude oil exports because of tighter sanctions. Vessel tracking service Kpler estimated Iranian crude oil exports above 1.8 million bpd in February.

Oil prices were also supported by the new OPEC+ plan for seven members to cut output further to compensate for producing more than agreed levels. The plan would represent monthly cuts of between 189,000 bpd and 435,000 bpd until June 2026.

OPEC+ this month confirmed that eight of its members would proceed with a monthly increase of 138,000 bpd from April, reversing some of the 5.85 million bpd of output cuts agreed in a series of steps since 2022 to support the market.

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China Says to Pursue 'Correct' Path of Globalization as Trade Woes Mount

China's Premier Li Qiang walks after concluding his speech during the opening ceremony of the China Development Forum at the Diaoyutai State Guesthouse in Beijing on March 23, 2025. (Photo by Adek BERRY and ADEK BERRY / POOL / AFP)
China's Premier Li Qiang walks after concluding his speech during the opening ceremony of the China Development Forum at the Diaoyutai State Guesthouse in Beijing on March 23, 2025. (Photo by Adek BERRY and ADEK BERRY / POOL / AFP)
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China Says to Pursue 'Correct' Path of Globalization as Trade Woes Mount

China's Premier Li Qiang walks after concluding his speech during the opening ceremony of the China Development Forum at the Diaoyutai State Guesthouse in Beijing on March 23, 2025. (Photo by Adek BERRY and ADEK BERRY / POOL / AFP)
China's Premier Li Qiang walks after concluding his speech during the opening ceremony of the China Development Forum at the Diaoyutai State Guesthouse in Beijing on March 23, 2025. (Photo by Adek BERRY and ADEK BERRY / POOL / AFP)

China's number two leader told a gathering of business executives in Beijing on Sunday that the country would pursue economic globalization despite "fragmentation", a thinly veiled reference to trade turmoil sparked by US President Donald Trump.

The China Development Forum convenes after weeks that have seen Trump slap multiple rounds of tariffs on goods from the country, threatening a vital lifeline as economic challenges persist.

Chinese leaders have been seeking to steer a shaky economy onto a more stable path since the end of the pandemic, particularly by boosting consumption.

They are also now seeking to assert the country's role as a staunch defender of the multilateral economic system, as Trump wages tariff wars with major US trading partners including China, Canada and Mexico.

"China will firmly stand on the correct side of history, that of fairness and justice, and act in a righteous manner amid the rough waters of the times," AFP quoted Premier Li Qiang as saying.

Li's speech came at the opening of the annual forum, attended this year by prominent business leaders including Apple CEO Tim Cook.

The country will "adhere to the correct direction of economic globalization, practice true multilateralism and strive to be a force for stability and certainty", Li vowed.

And in apparent reference to renewed trade wars sparked by Trump, he added: "today, global economic fragmentation is intensifying", while "instability and uncertainty are on the rise".

Beijing has in recent weeks expressed an open attitude toward engaging with Trump for trade talks.

US Senator Steve Daines on Saturday met with He Lifeng, China's Vice Premier responsible for economic matters, during a visit to Beijing viewed as a bid to ease strained relations.

Daines is also meeting with Li on Sunday for talks that are expected to involve the cross-border flow of fentanyl and the deadly drug's precursor chemicals from China into the United States.

- 'Candid dialogue' -

Trump says his new tariffs on China are due to Beijing's failure to stem shipments of the chemicals, which underpin a devastating drug crisis.

Beijing has insisted that it cracks down harshly on the illicit production and trade of drugs, describing the issue as one for Washington itself to solve.

During his meeting with Daines, He said China "firmly opposes the politicization, weaponization and instrumentalization of economic and trade issues".

The Vice Premier added that China is willing to "engage in candid dialogue" with the United States to resolve issues.

The two countries have "many common interests and broad space for cooperation", he added.

The tariffs imposed by Trump since taking office in January amount to a 20 percent blanket hike on Chinese overseas shipments to the United States.

The country's exports reached record heights last year, but observers warn that turbulence in the global trading system could force Beijing to find other ways to boost activity.

Data released Monday indicated an uneven recovery during the first two months of the year.

Retail sales charted a moderate increase from the previous January-February period, though unemployment rose to its highest level recorded in two years.

Beijing says it is targeting growth this year of around five percent -- the same as last year and a goal considered ambitious by many economists.