Oil prices fell on Friday but were on track for their first weekly gain in three weeks after US President Donald Trump and Chinese leader Xi Jinping resumed trade talks, raising hopes for growth and higher demand in the world's two largest economies, UNN writes with reference to Reuters.
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Brent crude futures fell 19 cents, or 0.3%, to $65.15 a barrel by 04:41 GMT (07:41 Kyiv time). West Texas Intermediate crude fell 20 cents, also 0.3%, to $63.17 after rising about 50 cents on Thursday.
On a weekly basis, both brands were on track to rise in price after falling for two consecutive weeks. Brent rose in price by 2.1% this week, while WTI is trading 4% higher.
The official Chinese news agency Xinhua reported that trade talks between Xi and Trump took place at Washington's request. Trump said the call led to a "very positive conclusion," adding that the US is "in very good shape with China and a trade deal."
Canada has also continued trade talks with the US, with Prime Minister Marc Carney in direct contact with Trump, according to the country's industry minister, Melanie Joly.
The oil market continued to fluctuate amid news of customs talks and data showing how trade uncertainty and the impact of US customs are spilling over into the global economy.
"The possibility of tightening US sanctions in Venezuela to limit crude oil exports and the possibility of an Israeli strike on Iranian infrastructure increase the risks of rising prices," analysts at BMI, a subsidiary of Fitch, said in a note on Friday.
"But both weaker oil demand and increased production from both OPEC+ countries and non-OPEC countries will increase downward pressure on prices in the coming quarters," experts pointed out.
The largest exporter, Saudi Arabia, has lowered oil prices in July for Asia to almost two-month lows. This was a smaller price cut than expected after OPEC+ agreed to increase production by 411,000 barrels per day in July.
The Kingdom has insisted on a larger increase in production, which is part of a broader strategy to regain market share and discipline overproducers in OPEC+.