The International Energy Agency raised its 2019 global oil demand growth estimate Friday and warned that sanctions against Iran will make the market "far less calm" than it is today.
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On Tuesday, President Trump's sanctions on Iranian goods, like metals and industrial software, went into effect. Sanctions on Iranian oil are expected in November.
"As oil sanctions against Iran take effect, perhaps in combination with production problems elsewhere, maintaining global supply might be very challenging and would come at the expense of maintaining an adequate spare capacity cushion," the energy group said in its monthly oil report Friday.
Brent crude rose 0.8% to $72.67 per barrel. U.S. crude was also up 0.8% to $67.33.
Exxon Mobil (XOM) shares fell 1% to 79.50 in premarket trading on the stock market today. Chevron (CVX) shares weren't active early. EOG Resources (EOG) wasn't active early but closed down 0.4% on Thursday falling further out of buy range. Parsley Energy (PE) edged up 0.1% to 29.99. The big Permian Basin producer is forming a cup-with-handle base with a 33.35 buy point.
The Iranian sanctions could stretch spare capacity as global demand is expected to grow.
The IEA now sees world oil demand growth in 2019 of 1.5 million barrels per day. That's up from a prior outlook of 1.4 million bpd.
The agency also said that demand for OPEC crude will rise by 300,000 bpd this year to 32.3 million bpd and by 500,000 bpd in 2019 to 31.9 million bpd.
"Oil demand growth is expected to remain relatively subdued in Q3 2018 before rebounding in Q4 2018," the report said.
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