Oil prices rose on Friday and were on track for a second straight weekly gain, helped by easing trade tensions between the United States and China.
The gains were limited, however, by expectations of higher supply from Iran and OPEC+.
Brent crude futures climbed 42 cents, or 0.65%, to $64.95 a barrel by early afternoon in London. U.S. West Texas Intermediate crude was up 41 cents, or 0.67%, at $62.03. Both benchmarks were set to finish the week with gains of more than 1.6%.
The market had fallen by over 2% in the previous session due to signs that Iran and the United States were moving closer to a nuclear deal. Such a deal could ease sanctions and allow more Iranian oil to enter the market.
U.S. President Donald Trump said the two sides were nearing an agreement, although some issues still needed to be worked out. A possible deal could lead to an increase of about 400,000 barrels a day in Iranian oil production.
Meanwhile, OPEC+ is continuing to phase out its voluntary supply cuts, adding to concerns about rising supply.
Still, investor mood was supported by the recent agreement between the U.S. and China to pause their trade dispute for 90 days. Both countries had imposed heavy tariffs on each other, raising fears of slower global growth and weaker oil demand.
Even with the temporary truce, there are still doubts about whether long-term trade tensions will be resolved, which could limit how much oil prices rise.
