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Brent oil is one of the most sought after commodities in the world today. Its applications range from energy production to its application as a feedstock for transportation fuels and petrochemical products such as plastics, solvents and adhesives. As a result, the oil industry is one of the most powerful sectors of the world economy, and changes in benchmark oil prices have a major impact on almost all sectors of production and consumption. More than four billion tons of oil are produced worldwide each year, with the Middle East having the largest share of proven oil reserves, close to 50%.

Brent crude futures closed Friday at $71.2 a barrel, up 0.2%, securing their second straight weekly rise of 2.24%. New U.S. sanctions on Iran and a new OPEC+ deal for seven countries to reduce output were the main drivers of this increase. Washington's "maximum pressure" effort to cut Iran's oil exports to zero was stepped up when the U.S. Treasury announced sanctions on Chinese refineries and ships that import Iranian crude. Tighter sanctions are expected to cut Iranian shipments by one million barrels per day, according to analysts. In order to counterbalance expected production increases, OPEC+ decided to impose additional output cuts between 189,000 and 435,000 barrels per day until June 2026, which further supported oil prices. This strategy is expected to stabilize the market and offset OPEC+'s previously announced supply hikes beginning in April.

Brent crude prices reversed earlier gains and sank about 1% to below $87 per barrel on Friday, as forecasts of ongoing robust Russian supply outweighed better-than-expected fourth-quarter US GDP figures and optimism for continued demand improvement in major petroleum importer China. Oil loadings from Russia's Baltic ports are expected to increase by 50% in January compared to the previous month, as exporters try to fulfill high demand in Asia while benefiting from increased global energy prices. Traders speculated that Urals and KEBCO crude oil loadings from Ust-Luga between February 1 and 10 could increase to 1.0 million tonnes, up from 0.9 million in January. Meanwhile, when OPEC meets next, it is expected to maintain current oil output levels, keeping supplies tight. For the week, the US oil benchmark is down more than 1%.