Crude Oil Prices up Amid Easing US-China Trade Tensions

The price of Brent crude increased by 88 cents or 1.4 per cent to $65.41 per barrel and the US West Texas Intermediate (WTI) crude gained 87 cents or 1.4 per cent to close at $62.49 a barrel.

The prospect of an Iranian nuclear deal could result in an easing of sanctions that could see Iranian crude return to the global market.

US President Donald Trump said on Thursday the country was nearing a nuclear deal with Iran, with the Iranian government “sort of” agreeing to its terms, though Reuters said there were still issues to resolve.

Market analysts noted that a nuclear deal lifting sanctions would allow Iran to increase oil output, resulting in additional supply of around 400,000 barrels per day.

Despite the outcome, the benchmarks posted a weekly rise of 1 per cent and 2.4 per cent respectively boosted this week by the US and China, the world’s two biggest oil consumers and economies, agreeing to a 90-day pause on their trade war during which both sides would sharply lower trade duties.

The two sides reached the deal that was outlined in a joint statement saying the 145 per cent and 125 per cent reciprocal rates would drop by 115 percentage points.

The hefty reciprocal tariffs had raised concerns about a sharp blow to global growth and oil demand.

On the geopolitical front, Russia and Ukraine failed to agree to a ceasefire at their first direct talks in more than three years on the war that started in February 2022.

Israel struck Yemen’s Red Sea ports of Hodeidah and Salif on Friday, continuing its campaign to degrade Houthi military capabilities.

On the US supply side, oil rigs fell by 1 to 473 this week, their lowest since January, energy services firm Baker Hughes said on Friday.

Meanwhile, the US dollar rose on Friday after the latest round of economic data showed a jump in import prices while consumer sentiment remained subdued, putting it on pace for a fourth straight weekly advance.