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Crude 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%.

Due to new U.S. sanctions on Iran and a new OPEC+ pact to reduce output among seven members, WTI crude futures gained 0.3% to close at $68.3 per barrel on Friday, marking their second straight weekly gains with a 1.64% increase. Washington's "maximum pressure" effort to cut down Iran's oil exports was strengthened as the U.S. Treasury announced fresh penalties on Chinese refineries and ships that import Iranian crude. Tighter sanctions are expected to reduce Iranian shipments by one million barrels per day, according to analysts. An OPEC+ proposal to offset anticipated production increases with extra output cutbacks ranging from 189,000 to 435,000 barrels per day until June 2026 further bolstered oil prices. This new strategy will help stabilize the market, compensating for OPEC+'s previously announced supply increments starting in April.

Global oil reserves: 1.7 trillion barrel. Estimated daily global oil demand in 2022: 99.4 million barrel. Global oil production in 2021: 4.25 billion tons. Despite growing concerns about the use of fossil fuels, oil consumption remains at an all-time high. The US is the country with the highest oil consumption worldwide, followed by China, whose oil demand has increased steadily over the past decade. Due to the lack of significant reserves in the country, China is also the world's top oil importer.