Oil prices rose on Friday and are on track for a weekly gain of over 4%, fueled by easing US-China trade tensions. Brent crude climbed $1.07 to $63.91 per barrel, while US West Texas Intermediate rose $1.11 to $61.02 — both reaching 10-day highs. Optimism around upcoming talks between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng is lifting market sentiment, as resolution of trade disputes could boost global oil demand. However, analysts remain cautious, noting a quick deal is unlikely.
Chinese export data also showed improvement, supporting oil demand expectations. Meanwhile, pressure on prices continues from OPEC+ plans to increase output, although a Reuters survey revealed OPEC’s April production actually declined due to lower output in Libya, Venezuela, and Iraq. Analysts suggest further sanctions, particularly on Iran, could lift prices if they lead to supply disruptions, but otherwise, oversupply concerns may persist amid easing OPEC+ cuts.
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