Crude prices surged on Friday as data showed that Iran's oil export fell sharply in March because of the West's sanctions.

The sanctions have started to impact Iran's oil export. According to estimates from industry consultant Petrologistics, Iran, the second largest OPEC oil exporter, shipped less 300,000 barrels of oil per day this month, or 14 percent lower. It was the first sizable drop in Iranian oil export this year.

Since the end of last year, the U.S. and Europe have imposed harsh sanctions on Iran over its nuclear program, with its oil industry bearing the brunt.

European countries and Japan reduced oil import from Iran while an international banking services firm also cut its ties with Iran 's banks, making it harder for Iran to sell oil to other countries.

Analysts said that less export from Iran meant less supplies in the market and made other sources of supply more expensive. The New York benchmark rose as much as 3 dollars and the Brent also jumped nearly 4 dollars.

But the International Energy Agency said it did not think there would be any disruption to global oil supply as Saudi Arabia and other Gulf producers were willing to produce more.

Meanwhile, worries about a global economic slowdown lingered, limiting the gains. As factory activities in Europe and China contracted, oil demand tended to be weak. Besides, U.S. new home sales fell 1.6 percent in February, missing estimates and fueling oil hikes.

Light, sweet crude for May delivery gained 1.52 dollars, or 1. 44 percent, to settle at 106.87 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for May delivery jumped 1.99 dollars, or 1.62 percent to close at 125.13 dollars a barrel. Both benchmarks edged down for the week, with New York crude losing 19 cents and Brent crude slipping 68 cents.

Source:china.org