The prices of oil futures continued to rise on Friday, driven by reports from Indian refining sources that indicated that the US Treasury is planning to enforce new sanctions targeting over 180 tankers carrying Russian oil and Russian insurance companies, aiming to disrupt the country’s oil income. West Texas Intermediate (WTI) for February’s deliveries soared by 4.03% at 9:04 am ET to sell for $76.90 per barrel. A minute later, Brent for March’s settlements surged by 3.81% to go for $79.79 per barrel. Despite the recent rise in prices, traders remain cautious about balancing tightening supply and uncertain demand signals. Supply Constraints Drive Upward Pressure Supply-side factors were critical in shaping crude oil’s price movements this week. OPEC production dropped by 50,000 barrels per day (bpd) in December, largely due to maintenance in the UAE and declining Iranian output. These reductions align with OPEC+’s broader commitment to cut production, ensuring supply remains constrained. Saudi Arabia and Iraq maintained steady production levels, adhering to the cartel’s strategy to limit global availability. Adding to the supply squeeze, Western sanctions on Russian crude shipments continued to bite. Efforts by the Biden administration to restrict Russian exports, coupled with expectations of a 300,000 bpd decline in Iranian production, amplified concerns over global supply. These geopolitical factors have reinforced support for prices, even as demand uncertainties loom. Colder-than-expected weather across the U.S. and Europe has sharply increased demand for heating oil