Oil closes higher amid supply shortage concerns

Oil drilling rigs

Oil prices turned higher today, Feb. 24, after the United States imposed additional sanctions on Iran's shadow fleet and Iraq committed to compensate for excess production, which increased concerns about supply shortages.

Brent crude futures for April delivery rose 0.45%, or 35 cents, to close at $74.78 a barrel.

WTI crude futures for April delivery (the most active) gained 0.45%, or 30 cents, to $70.70 a barrel.

The US Treasury Department imposed today a new round of sanctions targeting Iran's oil industry, affecting brokers, tanker operators and shipping companies for their role in selling and transporting Iranian oil.

Meanwhile, the Iraqi Ministry of Oil confirmed in a statement today its commitment to the OPEC+ agreement, noting that it will submit an updated plan to compensate for the surplus production that exceeds the quotas set by the alliance in recent months.