Oil Prices Continue Weekly Gains Amid Supply Decline Expectations

According to a report by Al-Attiyah Foundation, oil prices closed higher on Friday, marking their second consecutive weekly gain. The rise was driven by expectations of supply declines following new U.S. sanctions on Iran and the announcement of OPEC+’s upcoming production strategy.

Brent crude futures rose by 16 cents, or 0.2%, to settle at $72.16 per barrel, while U.S. West Texas Intermediate (WTI) crude futures increased by 21 cents, or 0.3%, reaching $68.28 per barrel. On a weekly basis, Brent crude gained 2.1%, while WTI rose by 1.6%, marking the largest weekly increase for both benchmarks since the start of the year.

The report attributed additional support for oil prices to OPEC+’s plan, which includes production cuts by seven of its members to compensate for exceeding previously agreed limits.

Meanwhile, spot liquefied natural gas (LNG) prices in Asia saw a slight increase this week but remained close to their three-month lows due to ample supply and mild weather forecasts. The average LNG price for May delivery to Northeast Asia reached $14.60 per million British thermal units (MMBtu), up from $13.40 in the previous week, according to industry sources.

The report also highlighted the sustained strong demand for long-term LNG contracts, such as those from Qatar, which are trading at a discount compared to spot prices. Taiwan’s LNG imports from Qatar in the first quarter of this year exceeded the five-year average, while Qatari shipments to China are increasing in March. This trend could reduce reliance on U.S. LNG, which has been subject to a 15% tariff since February 10, analysts noted.