Oil prices edged higher on Friday, buoyed by optimism surrounding global trade talks, which boosted expectations for economic growth and oil demand.
Brent crude futures reached a one-week high, gaining 20 cents, or 0.29%, to trade at $69.38 a barrel by 0519 GMT. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures also rose 20 cents, or 0.30%, to settle at $66.23 per barrel.
The gains in oil prices mirrored a broader uptick in global stock markets. Investors are encouraged by progress on trade negotiations between the United States and several of its trading partners, ahead of a looming August 1 deadline for new tariffs.
A U.S.-Japan trade agreement was announced Wednesday, and two European diplomats have indicated that the European Union is nearing a deal that could set a baseline U.S. tariff of 15% on EU goods, with the possibility of some exemptions.
Analysts at ING said in a note to clients, “Trade talk optimism appears to be offsetting expectations for stronger Venezuelan supply.”
Despite ongoing concerns about increased oil exports from Venezuela, market sentiment appears more heavily influenced by the potential for smoother global trade, which is seen as a positive signal for oil consumption.
