Oil Prices Rise on Fresh Iran Sanctions and Iraq’s OPEC+ Commitment

Oil prices edged higher on Monday as the U.S. imposed new sanctions on Iran's oil industry, targeting brokers and shippers involved in Iranian petroleum exports, while Iraq reaffirmed its commitment to the OPEC+ production agreement and announced plans to compensate for previous overproduction. Brent crude rose by 0.5% to $74.78 per barrel, while WTI increased by 0.4% to $70.70. The market recovered from Friday’s sharp losses, which were driven by expectations of resumed oil exports from northern Iraq and hopes for an end to the Ukraine war. Analysts caution that despite the sanctions, Iranian oil exports remain high, and potential diplomatic resolutions could introduce more Russian oil into the market. Additionally, ongoing U.S. tariff discussions and economic uncertainty may continue to weigh on crude demand.

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Trump Administration Targets Iranian Shadow Fleet with New Round of Sanctions

The Trump Administration has imposed additional sanctions on 13 vessels, individuals, and companies linked to the transportation and sale of Iranian crude. This marks the second round of sanctions under President Trump's "maximum pressure" campaign against Iran. The sanctioned entities include oil brokers from the UAE and Hong Kong, Chinese and Indian ship managers, and key figures within the National Iranian Oil Company (NIOC). The sanctioned vessels include tankers involved in ship-to-ship transfers of Iranian crude. The move underscores the U.S.'s continued efforts to disrupt Iran's oil supply chain and destabilizing activities. The sanctions target multiple companies and individuals, including the Deputy Minister of Petroleum of Iran and several ship managers in Malaysia and India.

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EU Targets Unsafe Tanker Operations in Latest Sanctions Against Russia

The European Union announced a fresh round of sanctions, targeting 74 ships connected to unsafe oil tanker operations in Russia’s trade. This measure, the 16th in the EU's sanctions package since Russia’s invasion of Ukraine, increases the total number of sanctioned vessels to 153. The new sanctions also focus on the networks enabling risky tanker operations, with the EU hoping to address both the environmental concerns of the shadow fleet and the violation of oil price caps. Meanwhile, the UK blacklisted an additional 40 ships, citing their involvement in carrying Russian oil valued at $5 billion. While previous sanctions have reduced crude deliveries by 76%, the EU aims to strengthen its sanctions regime, further restricting Russian oil trade. The latest actions come amidst growing calls for increased pressure on shadow fleets and efforts to support Ukraine’s security ahead of any potential peace talks.

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OPEC+ to Boost Oil Production in April Amid U.S. Pressure, BofA says

OPEC+ is expected to increase crude production in April following pressure from U.S. President Donald Trump to lower oil prices, according to Jason Prior, Bank of America’s head of oil trading. The group, led by Saudi Arabia and Russia, may restore around 150,000 barrels per day after having curtailed output since 2022. Trump’s push aims to ease global oil prices and pressure Russia to end the war in Ukraine. West Texas Intermediate crude, which peaked at $80 per barrel in mid-January, has since dropped to around $70.

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India’s Crude Oil Imports Hit Eight-Month High in January

India's crude oil imports rose 3.2% month-on-month to 20.85 million metric tons in January, reaching their highest level since May 2024, according to government data. However, year-on-year imports declined by 3.1%. Imports of crude oil products increased by 13.8%, while exports of refined products rose by 13%. The rise in imports was driven by inventory buildup amid uncertainty over the impact of new U.S. sanctions on Russian crude. Reliance Industries increased Russian oil imports by 10% due to a long-term deal with Rosneft, while U.S. oil shipments to India surged, making Washington the country’s fifth-largest supplier. Analysts suggest the import increase reflects strategic stockpiling rather than immediate demand growth, as domestic consumption and exports saw moderate declines compared to December.

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Petrobras Invests $960 Million to Develop Brazil’s First Biorefinery

Brazil’s state-run oil company Petrobras will invest approximately 5.5 billion reais ($960 million) to transform its Riograndense refinery into the country’s first biorefinery, CEO Magda Chambriard announced on Monday. Located in Rio Grande do Sul, the facility will be the first in Brazil to operate without petroleum and will eventually produce 100% renewable jet fuel and diesel. While a specific timeline for completion was not provided, the investment marks a significant step in Petrobras' shift toward sustainable energy production.

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BP Shifts Focus Back to Fossil Fuels, Drops Renewable Energy Targets

BP's CEO Murray Auchincloss is set to announce a major strategy shift on Wednesday, scrapping the company’s target to increase renewable energy capacity 20-fold by 2030 and instead refocusing on fossil fuels to address investor concerns over earnings. BP has already reduced its oil and gas output reduction target and will now abandon its goal of reaching 50 gigawatts of renewable capacity, alongside plans to divest assets and cut low-carbon investments to reduce debt and boost returns. The move aligns with a broader sector-wide shift back to oil and gas, driven by rebounding fossil fuel prices and the investor climate under U.S. President Donald Trump’s re-election. Pressure from activist investor Elliott Investment Management, which has built a nearly 5% stake in BP, has also influenced the change, with demands to scale down green energy spending and sell non-core assets. BP may announce cuts of $2-$3 billion to its annual low-carbon capital expenditures as part of the new strategy.