Crude Oil up 3% on Possible US-Europe Trade Deal Signals

During the session, Brent crude futures gained $2.11 or 3.2 per cent to sell at $67.96 per barrel and the US West Texas Intermediate (WTI) crude futures appreciated by $2.21 or 3.54 per cent to close at $64.68 a barrel.

For the week, both Brent and WTI gained 5 per cent, their first weekly gain in three weeks. Thursday is the last settlement day of the week ahead of the Easter holidays.

US President Donald Trump and Italian Prime Minister Giorgia Meloni met in the US and expressed optimism about resolving trade tensions that have strained US-European relations.

President Trump said he was 100 per cent certain of an eventual trade deal with Europe, the most confidence he has expressed on those negotiations since rattling world markets with his tariff announcements.

“Of course there will be a trade deal, very much. They want to make one very much. And we are going to make a trade deal. I fully expect it. And it will be a fair deal,” he said.

The 27-nation European Union faces 25 per cent import tariffs on steel, aluminum and cars, and broader tariffs on almost all other goods under President Trump’s policy to hit countries he says impose high barriers to US imports.

The American President has offered to make trade deals with as many nations as possible to limit the impact of the tariffs.

Also supporting prices are sanctions issued by Trump’s administration on Wednesday, including against a China-based oil refinery, ramp up pressure on Iran amid talks on the country’s nuclear programme.

The US also issued additional sanctions on several companies and vessels it said were responsible for facilitating Iranian oil shipments to China as part of Iran’s shadow fleet.

The Organisation of the Petroleum Exporting Countries and its allies, OPEC+, has also provided updates and reassurance to the market, stating that they remain in control with flexibility to cut production if needed.

The cartel said on Wednesday it had received updated plans for Iraq, Kazakhstan and other countries to make further output cuts to compensate for pumping above quotas.

Worries remain as OPEC, the International Energy Agency (IEA) and several banks, including Goldman Sachs and JPMorgan, cut forecasts on oil prices and demand growth this week over tariffs and possible retaliation.