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LONDON: Oil prices rose on Friday, poised for a weekly gain as trade tensions between top oil consumers China and the US showed signs of easing.
Brent crude rose by $1.07, or 1.7 percent, to $63.91 a barrel by 4:07 p.m. Saudi time. US West Texas Intermediate crude was up $1.11, or about 1.85 percent, at $61.02.
Both benchmarks were at their highest in nearly 10 days and on track to rise more than 4 percent for the week.
Trade talks between the US and China are definitely positive for oil, given that tariffs at their current extremes keep recession risks elevated, said Bjarne Schieldrop, chief commodities analyst at SEB.
US Treasury Secretary Scott Bessent will meet China’s top economic official Vice Premier He Lifeng in Switzerland on May 10 to work toward resolving the trade disputes that have threatened oil demand.
US President Donald Trump said on Friday that China should open up its market to the US and that 80 percent tariffs on Chinese goods “seems right.” Current tariffs stand at 145 percent for China.
However, analysts noted that while the desire of both sides to cool tensions is a positive catalyst, a deal is unlikely to materialize very quickly.
Chinese exports rose faster than expected in April while imports narrowed their decline, customs data showed on Friday, giving Beijing some relief ahead of the talks.
Weighing on oil prices, meanwhile, was the planned increase to oil output by the Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+.
However, a Reuters survey found that OPEC oil output edged lower in April as production declines in Libya, Venezuela and Iraq outweighed a scheduled increase in output.
“Further sanctions would help crude prices if it means more disruption to Iranian production,” said Panmure Liberum analyst Ashley Kelty.
“If not, the forecast oversupply will only be made worse by recent OPEC+ moves to unwind quota reductions.”