Oil prices inched upward on Friday after the European Union passed its 18th sanctions package against Russia. Additionally, drone strikes in Iraq disabled major Kurdish oilfields, further tightening global supply. As a result, Brent crude remained steady near $70 per barrel, buoyed by a mix of political risk and constrained output.
As of 3:00 PM WAT on July 18, 2025, Brent rose to $70.23 (+1.02%), WTI rose to $68.27 (+1.08%), and natural gas climbed to $3.596 (+1.52%). U.S. oil production dipped slightly to 13.375 million barrels per day, down 10,000 from the previous week.
Analysts say these disruptions are reinforcing a bullish sentiment in an already fragile market.
Kurdish Output Slashed After Devastating Drone Strikes
The most immediate supply shock came from northern Iraq. There, drone attacks loaded with explosives severely damaged oilfields operated by Norway’s DNO ASA. Notably, the Tawke and Peshkabir fields—some of the largest in Kurdistan—were knocked offline within days.
According to local reports and security officials, the strikes were linked to Iran-backed militias. Consequently, the attacks have slashed Kurdish production by approximately 200,000 barrels per day. This unplanned cut has done what Baghdad’s negotiations could not: it aligned Kurdish output more closely with Iraq’s OPEC+ quota.
EU Approves Sanctions, But Enforcement Is in Question
Meanwhile, in Brussels, the European Union finalized its latest sanctions targeting Russian crude exports. Slovakia lifted its veto after receiving energy security assurances from Brussels. The new measures include a so-called “floating” price cap mechanism to replace earlier fixed thresholds.
While the effectiveness of enforcement remains uncertain, policymakers argue that the continued restrictions signal Europe’s resolve. According to them, these curbs are designed to reduce Moscow’s oil revenue without destabilizing the market.
Energy Headlines Around the Globe
Chevron Wins Dispute Over Hess Assets
Chevron (NYSE: CVX) has cleared a major hurdle in its $53 billion acquisition of Hess Corporation. After a ruling from the International Chamber of Commerce, Chevron secured a 30% stake in Guyana’s prized Stabroek block.
BlackRock Nears $10 Billion Deal with Aramco
In Saudi Arabia, BlackRock (NYSE: BLK) is reportedly closing in on a $10 billion investment in the Jafurah sour gas project. The deal would provide the U.S. firm access to one of the Kingdom’s largest untapped gas reserves.
India Eyes Another Refinery Amid Capacity Fears
India’s state-run ONGC is considering building a new 240,000 bpd refinery in Gujarat. This move has raised concerns over excess refining capacity, especially with Reliance’s giant Jamnagar complex already located in the state.
Malaysia Cracks Down on Iranian Oil Transfers
Under U.S. pressure, Malaysian authorities are preparing to restrict illegal ship-to-ship transfers of Iranian crude. This crackdown could impact between 1.5 and 1.7 million bpd of shipments, primarily to China.
Russian Output Drops Under OPEC+ Cuts
Russia reported a 3.5% year-over-year drop in crude output between January and May 2025. Gas production also slipped by 3%, reflecting the ongoing impact of OPEC+ cuts and export constraints.
U.S. Market Snapshot: Imports, Prices, and Stocks
Crude Oil Imports
As of July 11, the United States imported 6.579 million barrels per day, slightly higher than a year ago. Notably, Gulf Coast imports rebounded while Midwest volumes dipped.
Gasoline Prices
U.S. retail gas prices averaged $3.13 per gallon as of July 14. That figure marks a decline from $3.496 one year prior and represents a modest drop from $3.213 just three weeks ago.
Crude Inventories
National crude stocks stood at 422.2 million barrels, down from 426 million the previous week. Cushing, Oklahoma, a key trading hub, held 21.4 million barrels, a sharp decline from 32.7 million last year.
Tight Supply and High Risk Premiums
Despite a strong dollar and uneven global demand, supply-side disruptions continue to steer oil prices. Traders are closely watching events in Iraq and Russia, as well as how EU sanctions play out in real terms.
Experts caution that falling inventories, especially at Cushing, and regional volatility could trigger further price spikes if demand rises.