Oil rises on fears of supply pressures under Trump administration

Oil drilling rigs

Oil prices rose today, Nov. 13, amid concerns over declining global supplies under the administration of US President-Elect Donald Trump, due to the possibility of imposing more restrictions on Iran and Venezuela.

International benchmark Brent crude was trading up 0.19% at $72.03 a barrel, at 09:50 am Makkah time. West Texas Intermediate (WTI) crude rose 0.21% at $68.26 a barrel.

ANZ analysts said in a note that the rise in oil prices came on the back of heavy buying in the physical market, which offset the negative effects resulting from weak investor sentiment towards the prospects of global demand for black gold, Reuters reported.

Meanwhile, OPEC lowered its forecast for global oil demand growth for the fourth time in a row, as investors reacted negatively to China's recent financial measures to support the domestic economy.

Separately, despite the Trump's pledge to increase his country's oil production, analysts expect global supplies to decline during his second term due to his administration's hardline approach towards Iran and Venezuela, and the possibility of imposing further restrictions on the two countries' oil supplies.