Oil prices rose on Friday, poised for a weekly gain as trade tensions between top oil consumers, China and the United States, showed signs of easing.
Brent crude increased by $1.20, or 1.9%, reaching $64.04 per barrel by 1203 GMT. U.S. West Texas Intermediate crude climbed $1.26, or about 2.1%, to $61.17. Both benchmarks were at their highest levels in nearly 10 days and were on track to rise more than 4% for the week.
The ongoing trade talks between the U.S. and China are seen as positive for oil, given that current tariffs at extreme levels have kept recession risks elevated. U.S. Treasury Secretary Scott Bessent is scheduled to meet China’s top economic official, Vice Premier He Lifeng, in Switzerland on May 10 to work towards resolving trade disputes that have been weighing on oil demand.
In a related development, U.S. President Donald Trump stated that China should open its markets to the United States and suggested that an 80% tariff on Chinese goods “seems right,” a reduction from the current 145% tariffs. While both sides have expressed a desire to ease tensions, analysts remain cautious, suggesting that a deal is unlikely to materialize quickly.
In other developments, Chinese exports rose faster than expected in April, while imports narrowed their decline, providing some relief for Beijing ahead of the trade talks.
However, oil prices were somewhat pressured by plans from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, to increase oil output. Despite these plans, a survey indicated that OPEC oil output edged lower in April, with production declines in Libya, Venezuela, and Iraq offsetting the scheduled increase.
