Oil Heads for Weekly Gain but Remains under Supply Hike Pressure
Oil prices edged up on Friday, heading for a second consecutive weekly gain on easing US-China trade tensions, although the optimism was somewhat offset by higher supply expectations from Iran and OPEC+.
Brent crude futures were up 29 cents, or 0.5%, at $64.82 per barrel at 1054 GMT, while US West Texas Intermediate crude futures rose 27 cents, or 0.4%, to $61.89.
Both contracts fell more than 2% in the previous session on the prospect of an Iranian nuclear deal, which could result in more barrels being released onto the global market.
“The enthusiasm resulting from progress in relations between the US and China allowed the oil price to recover,” said Harry Tchiliguirian, group head of research at Onyx Capital Group, Reuters reported.
“But OPEC+ accelerates the unwinding of its voluntary supply cuts and the US-Iran nuclear talks are still ongoing, keeping the barrels of the latter still flowing to China.”
US President Donald Trump said the US was nearing a nuclear deal with Iran, with Tehran “sort of” agreeing to its terms. However, a source familiar with the talks said there were still issues to resolve.
