Investing.com-- Oil prices slipped lower Friday, but were on track for weekly gains as fresh U.S. sanctions against Iran and plans to cut production by the OPEC+ pointed to tighter supplies in the coming months.

At 09:55 ET (13:55 GMT), Brent oil futures expiring in May fell 0.6% to $72.46 a barrel, while West Texas Intermediate crude futures rose 0.7% to $68.16 a barrel.

Both contracts registered highest levels since early-March earlier in the session, and were each set to add over 1% this week - the second consecutive positive gain.

Crude prices are recovering from more than three-year lows struck earlier in March, as they were hit by fears of slowing demand and rising supplies.

US hits Iran with new sanctions

The U.S. on Thursday issued new sanctions against Iran and related entities on Thursday, targeting an independent Chinese refinery and the vessels that supply crude to such facilities.

The move was Washington’s latest round of restrictions on Iran, after President Donald Trump said in February that he will reimpose a “maximum pressure” campaign against Iran with a goal of driving down the country’s exports to zero.

Trump’s main goal is to deter Tehran from developing a nuclear weapon. Several oil tankers - which Washington claims are a part of Iran’s “shadow fleet” of vessels - were targeted in the new sanctions.

China does not recognize U.S. sanctions against Iran, and is the biggest buyer of oil from the country.

OPEC+ plans output cuts

The Organization of Petroleum Exporting Countries and allies, a group known as OPEC+, also said on Thursday that seven of its member states will cut output to make up for recent production increases.

The plan will entail monthly cuts of between 189,000 and 435,000 barrels per day, and will last until June 2026.

The new cuts, which will see reduced production chiefly in Iraq and Saudi Arabia, will largely offset a recent decision to increase production. Kazakhstan was seen producing well above OPEC+ mandates in recent months.

"OPEC+ are sending mixed messages to the market," said David Goldman, Head of Trading at Novion Global. "Yesterday they announced that 7 members are prepared to make further cuts to output, to make up for producing at a rate above their agreed levels. However, earlier this month, the group confirmed that 8 of its members will proceed with a monthly increase."

"The recent price rise needs to be taken in context," he added. The "price has only rallied just over $4 from its lows, on the back of a more than $14 sell-off. Increased tension in the Middle East, further sanctions on Iran combined with the possibility of a ceasefire between Russia & Ukraine are most likely the core drivers to the price increase, rather than OPEC+."

(Ambar Warrick contributed to this article.)