• US sanctions against Iran tighten supply outlook
• OPEC+ enforces compliance cuts
• Demand forecasts downgraded
• Mixed US inventory picture
• ~5% weekly gain before holiday

Brent rose above $67 on Thursday, extending gains for a second session, after new US sanctions on Iran's oil sector and a Chinese refinery heightened supply concerns.

The measures increase pressure on Tehran as nuclear negotiations remain uncertain, potentially removing more barrels from an already tight market.

OPEC+ added to supply concerns by securing commitments from Iraq and Kazakhstan to deepen production cuts after exceeding quotas.

However, demand pressures emerged as OPEC, the IEA and major banks downgraded their oil demand growth forecasts, citing slowing economic activity in the US and China amid ongoing trade tensions.

This week's gain was around ~5% – the first in three weeks – despite a build in US crude inventories.

While geopolitical risks support prices, macroeconomic headwinds may limit further upside potential.

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