Oil prices rise on trade hopes
Oil prices rose on Friday as trade talk optimism supported the outlook for both the global economy and oil demand, outweighing news of the potential for more oil supply from Venezuela.
Brent crude futures touched a one-week high and was up 29 cents, or 0.42%, at $69.47 a barrel as of 0310 GMT. U.S. West Texas Intermediate crude futures climbed 29 cents, or 0.44%, to $66.32.
Oil, along with stock markets, gained support from the prospect of more trade deals between the U.S. and trading partners ahead of August 1, when the U.S. will impose new tariffs on goods from an array of countries.
The United States announced a trade deal with Japan on Wednesday, after which two European diplomats said the European Union was moving toward a deal involving a baseline 15% U.S. tariff on EU imports plus possible exemptions.
'Trade talk optimism appears to be offsetting expectations for stronger Venezuelan supply,' ING analysts wrote in a client note on Friday.
The U.S. is preparing to allow partners of Venezuela's state-run PDVSA (PDVSA.UL), starting with U.S. oil major Chevron (CVX.N), opens new tab, to operate with limitations in the sanctioned nation, sources said on Thursday.
Venezuelan oil exports could consequently increase by a little more than 200,000 barrels per day, which would be welcome news for U.S. refiners as it would ease tightness in the heavier crude market, ING analysts wrote.
So far this week, Brent has gained 0.4% and WTI has fallen 1.4%.
Both contracts advanced around 1% on Thursday driven by reports of cuts to Russian gasoline exports.
Also supporting the market were U.S. crude inventory draws.
U.S. Energy Information Administration data on Wednesday showed crude inventories fell last week by 3.2 million barrels to 419 million barrels, far more than the 1.6 million barrel draw estimated by analysts in a Reuters poll.
'I am encouraged by the way crude oil held and bounced away from the $65/64 support band this week, which keeps hopes intact of a rebound back towards $70,' said IG analyst Tony Sycamore, adding that next week will bring data for traders to chew over.
Economic data next week from the world's biggest economies and oil consumers include factory activity in China and U.S. inflation, jobs and inventories.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Iraqi News
33 minutes ago
- Iraqi News
France's Sanofi helps Iraq develop pharmaceutical industry
Baghdad ( – The Iraqi Ministry of Health mentioned on Sunday that the agreement with Sanofi, a French pharmaceutical and healthcare company, represents an essential step toward strengthening Iraq's pharmaceutical industry. During his participation in a scientific workshop on biosimilar medicines and intellectual property, Deputy Health Minister Hani al-Oqabi explained that the agreement reached with Sanofi is not limited to the pharmaceutical industry but includes other important areas, according to the state-run news agency (INA). Iraqi Prime Minister Mohammed Shia al-Sudani has lately been focusing on developing collaboration with international enterprises and seeking investments to build industries in Iraq, according to al-Oqabi. The prime minister's advisor on industry and private sector development, Hammoudi al-Lami, revealed earlier that AstraZeneca, a British-Swedish multinational pharmaceutical and biotechnology company based in Cambridge, is thinking of building a pharmaceutical facility in Iraq. In a statement to the Iraqi News Agency (INA), al-Lami explained that Arab and foreign companies are eager to set up businesses in the Iraqi market. The Iraqi official indicated that the US multinational healthcare company Baxter, as well as businesses in the Gulf States, had also expressed a desire to become part of the Iraqi market. The Iraqi Ministry of Health revealed in late April that it signed an agreement with European companies to establish an insulin production plant in the northern Iraqi province of Nineveh. According to INA, the agreement was signed with a Polish firm, one of the top four producers of insulin worldwide, and a German corporation. The idea to produce insulin in Iraq that meets all European requirements was sparked by the Iraqi government's support for pharmaceutical and health industry initiatives. The steps align with the objectives outlined in the Iraqi government's agenda, which emphasizes the development of the country's health sector.
Shafaq News
an hour ago
- Shafaq News
SLC's Atwan al-Atwani elected new Baghdad governor
Shafaq News – Baghdad On Sunday, the Baghdad Provincial Council elected Atwan al-Atwani, a senior figure in the State of Law Coalition (SLC) and current head of the Parliamentary Finance Committee, as the new governor of the Iraqi capital. The vote followed a close contest between two political heavyweights: al-Atwani, backed by former Prime Minister Nouri al-Maliki's SLC, and Dhulfiqar Thamer al-Fayyad, supported by the Development and Reconstruction Bloc led by current Prime Minister Mohammed Shia al-Sudani. The presidency had cleared the way for the new appointment after President Abdul Latif Rashid approved the retirement of outgoing governor Abdul Mutalib Alawi. This marks the second time Alawi has been retired from the post, following a previous dismissal by the council on July 3, which had briefly led to the appointment of Haidar Mohan as governor.
Shafaq News
3 hours ago
- Shafaq News
Iraq to launch cross-border rail linking Basra and Iran
Shafaq News – Baghdad Iraq's Ministry of Transport announced on Sunday the imminent launch of the Basra–Shalamcheh railway project, a 36-kilometer cross-border line aimed at easing pilgrim traffic and strengthening regional connectivity. Ministry spokesperson Maytham al-Safi told Shafaq News that preliminary work is underway, including demining, land clearance, and final administrative steps. A contract signing with the executing company is expected soon, with construction to follow. 'The railway will enable the movement of over five million Iraqi and Iranian visitors annually, especially during religious seasons,' al-Safi said. Currently, pilgrims arriving by train from Iran must transfer at the border to reach Basra and continue toward Karbala. The new link will close that gap, integrating with Iraq's internal lines, including the active Basra–Karbala and Basra–Baghdad corridors. Construction is expected to take 36 months. Last year, the ministry operated 17 trains during peak pilgrimage periods and is prepared to scale up this year based on demand. Al-Safi said the project is central to Iraq's plans to modernize its transport infrastructure and deepen regional ties. The government has earmarked $150M for the line, which also forms part of a broader initiative to connect major religious sites in Iraq and Iran.
