WTI Up 2% to $86, Brent Nears $90 on Supply Cuts, Iran $200 Warning
Saudi Arabia lifted crude output sharply in February even as Hormuz tensions cut 6M bpd and Iran warned oil could reach $200, driving WTI futures up 2% to $86. Brent neared $90 as traders await reserve release, while Russian tax oil price topped targets and a Chinese terminal resumed business.
1. Saudi Arabia Production Surge
Saudi Arabia sharply increased crude output in February, contributing to higher global supply even as OPEC maintained its demand growth forecast for 2026.
2. Iran Threatens Continuous Strikes
Tehran’s military command announced a shift to continuous strikes on adversaries and warned that oil prices could surge to $200 per barrel, intensifying risk premiums in crude markets.
3. Price Rally and Reserve Watch
WTI futures climbed 2% to $86 per barrel while Brent approached $90 as traders weighed the supply cuts in the Strait of Hormuz and awaited a possible release of emergency government reserves.
4. Russian Tax Price and Chinese Terminal
The price of Russian crude used for tax calculations surpassed the national budget target for the first time since January 2025, and a Chinese oil terminal resumed business after a change in ownership.