Oil was little changed in the final trading session of the week as traders weighed the first U.S. sanctions on Chinese imports of Iranian crude against the uncertain outlook for global growth.

Brent crude futures fell slightly below $72 a barrel, erasing earlier gains, while still posting their biggest weekly gain since January. The U.S. sanctioned a small Chinese refiner and its chief executive for allegedly buying Iranian oil, as well as a terminal operator. The market structure for Middle East crude firmed after the news.

The Trump administration's first intervention in the Asian nation's oil refining system is "a clear risk increase for physical flows in the region," RBC Capital Markets LLC analysts including Brian Leisen wrote in a note. "While the physical implications are minimal, we think it's reasonable to take the risk premium here more seriously."(Newsmaker23)

Source: Bloomberg