Oil prices rise on trade hopes
Oil prices rose on Friday as trade talk optimism supported the outlook for both the global economy and oil demand, outweighing news of the potential for more oil supply from Venezuela.
Brent crude futures touched a one-week high and was up 29 cents, or 0.42%, at $69.47 a barrel as of 0310 GMT. U.S. West Texas Intermediate crude futures climbed 29 cents, or 0.44%, to $66.32.
Oil, along with stock markets, gained support from the prospect of more trade deals between the U.S. and trading partners ahead of August 1, when the U.S. will impose new tariffs on goods from an array of countries.
The United States announced a trade deal with Japan on Wednesday, after which two European diplomats said the European Union was moving toward a deal involving a baseline 15% U.S. tariff on EU imports plus possible exemptions.
'Trade talk optimism appears to be offsetting expectations for stronger Venezuelan supply,' ING analysts wrote in a client note on Friday.
The U.S. is preparing to allow partners of Venezuela's state-run PDVSA (PDVSA.UL), starting with U.S. oil major Chevron (CVX.N), opens new tab, to operate with limitations in the sanctioned nation, sources said on Thursday.
Venezuelan oil exports could consequently increase by a little more than 200,000 barrels per day, which would be welcome news for U.S. refiners as it would ease tightness in the heavier crude market, ING analysts wrote.
So far this week, Brent has gained 0.4% and WTI has fallen 1.4%.
Both contracts advanced around 1% on Thursday driven by reports of cuts to Russian gasoline exports.
Also supporting the market were U.S. crude inventory draws.
U.S. Energy Information Administration data on Wednesday showed crude inventories fell last week by 3.2 million barrels to 419 million barrels, far more than the 1.6 million barrel draw estimated by analysts in a Reuters poll.
'I am encouraged by the way crude oil held and bounced away from the $65/64 support band this week, which keeps hopes intact of a rebound back towards $70,' said IG analyst Tony Sycamore, adding that next week will bring data for traders to chew over.
Economic data next week from the world's biggest economies and oil consumers include factory activity in China and U.S. inflation, jobs and inventories.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Shafaq News
3 hours ago
- Shafaq News
President Barzani, Iranian official push to boost trade
Shafaq News – Erbil On Tuesday, Kurdistan Region President Nechirvan Barzani met with Reza Rahmani, governor of Iran's West Azerbaijan province, to discuss expanding trade and facilitating cross-border travel. Rahmani conveyed Iranian President Masoud Pezeshkian's greetings and reaffirmed Tehran's interest in strengthening ties with the Region. Barzani stressed the importance of Kurdistan's historic relationship with Iran and called for broader cooperation. The talks, also attended by the governor of Erbil, focused on practical measures to improve commerce and streamline movement through border crossings. — Kurdistan Region Presidency (@KurdistanRegion) July 29, 2025
Shafaq News
7 hours ago
- Shafaq News
Basrah crude prices drop despite global oil market steadiness
Shafaq News – Baghdad Iraq's Basrah crude prices fell on Tuesday, even as international oil markets held steady. Basrah Heavy dropped by $0.42 to $67.10 per barrel, while Basrah Medium also declined by $0.42, reaching $70.60 per barrel. Globally, oil prices were largely flat as traders assessed the impact of a new trade deal between the United States and the European Union and awaited the US Federal Reserve's decision on interest rates. As of 06:10 GMT, Brent crude futures edged up by one cent to $70.05 a barrel, while US West Texas Intermediate (WTI) slipped by two cents to $66.69 a barrel.
Shafaq News
7 hours ago
- Shafaq News
Oil prices hold ground on US-EU trade deal uncertainty
Shafaq News (Updated at 9:57 a.m.) Oil prices were steady on Tuesday amid uncertainty about the global economic outlook following the U.S.-EU trade deal, and as investors awaited the U.S. Federal Reserve's interest rate decision. Brent crude futures were up 1 cent at $70.05 a barrel at 0610 GMT, while U.S. West Texas Intermediate crude was at $66.69, down 2 cents. Both contracts settled more than 2% higher in the previous session, and Brent touched its highest level since July 18 on Monday. The trade agreement between the United States and the European Union, while imposing a 15% import tariff on most EU goods, sidestepped a full-blown trade war between the two major allies that would have rippled across nearly a third of global trade and dimmed the outlook for fuel demand. The agreement also calls for $750 billion of EU purchases of U.S. energy in the coming years, which analysts say the EU has virtually no chance of meeting, while European companies are to invest $600 billion in the U.S. over the course of President Donald Trump's second term. While the U.S.-EU trade deal finalisation came as a relief for global markets amid heightened uncertainty, the timeline and milestones targeted for the investments are unclear, said ANZ analysts in a note. 'We think the 15% rate will pose headwinds to the Euro area's growth outlook but is unlikely to push the economy into recession.' Meanwhile, top economic officials from the U.S. and China met in Stockholm on Monday for more than five hours of talks to resolve longstanding economic disputes at the centre of a trade war between the world's top two economies. The discussions are expected to resume on Tuesday. Oil market participants are also awaiting the U.S. Federal Open Market Committee meeting on July 29-30, where the Fed is widely expected to hold rates but could signal a dovish tilt amid signs of cooling inflation, said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova. 'Momentum favors the upside in the near term, but the market is vulnerable to volatility triggered by central bank surprises or a breakdown in trade negotiations,' said Sachdeva. 'The likelihood of an economic slowdown and the Federal Reserve's potential rate cuts remain uncertain, limiting the upside in oil.' Meanwhile, Trump set a new deadline on Monday of "10 or 12 days" for Russia to make progress toward ending the war in Ukraine or face sanctions. Trump has threatened sanctions on both Russia and buyers of its exports unless progress is made.
