Oil prices rose on Friday, as optimism about trade talks supported the prospects for both the global economy and oil demand, outweighing news of a potential increase in oil supplies from Venezuela, UNN reports with reference to Reuters.
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Brent crude futures hit a weekly high and rose 20 cents, or 0.29%, to $69.38 a barrel by 05:19 GMT (08:19 Kyiv time). US West Texas Intermediate crude futures rose 20 cents, or 0.30%, to $66.23.
The oil market, along with stock markets, received support from the prospect of new trade agreements between the United States and its trading partners ahead of the August 1 deadline for imposing new tariffs on goods from a number of countries.
After the United States and Japan unveiled a trade deal on Wednesday, two European diplomats said the EU was moving towards an agreement that would include a 15% basic US tariff on imports from the EU, as well as possible exceptions.
EU and US on track for 15% tariff deal - Reuters24.07.25, 08:35 • [views_3684]
"Optimism in trade talks seems to offset expectations of increased supplies from Venezuela," ING analysts wrote in a client note on Friday.
The United States is preparing to allow partners of Venezuela's state-owned PDVSA, starting with US oil giant Chevron, to operate with restrictions in the sanctioned country, sources said on Thursday.
Venezuelan oil exports could, as a result, increase by just over 200,000 barrels per day, which would be good news for US refiners as it would ease tension in the heavy oil market, ING analysts wrote.
This week, Brent prices rose 0.4%, while WTI fell 1.4%.
On Thursday, both contracts rose by about 1% due to reports of reduced Russian gasoline exports. This week saw brief disruptions to Kazakh Black Sea oil exports and loading of Azerbaijani BTC oil from the Turkish port of Ceyhan.
The reduction in US oil inventories also supported the market.
"I'm encouraged by how oil has held and bounced off the range this week, which keeps hopes alive for a recovery to $70," said IG analyst Tony Sycamore, adding that next week will provide data for traders to consider.
Economic data next week from the world's largest economies and oil consumers include factory activity in China and inflation, jobs, and inventories in the US.