Oil prices remained stable during Friday’s Asian trading session, following notable gains on Thursday, as markets looked ahead to possible new U.S. trade agreements and supply disruptions from Russia. The price action reflects cautious optimism amid shifting geopolitical and economic developments.
At 21:31 ET (01:31 GMT), Brent crude futures for September delivery ticked up 0.2% to $69.29 a barrel, while West Texas Intermediate (WTI) futures rose 0.2% to $66.13. Both contracts rallied over 1% in the prior session, driven by a sharp decline in U.S. crude stockpiles.
Momentum Builds on Trade Agreement Hopes
Markets reacted positively to signs of progress in multiple U.S. trade negotiations. Reports indicated that a long-anticipated deal between the U.S. and European Union could soon be finalized, replacing a planned 30% tariff with a lower 15% duty on most EU goods from August 1.
Meanwhile, Indian Commerce Minister Piyush Goyal expressed optimism over ongoing talks with Washington, noting the possibility of avoiding the proposed 26% tariffs on Indian exports.
“It looks like talks with the EU are moving in the right direction. These deals should help reduce uncertainty and also ease some of the demand concerns that have been lingering in the oil market,” ING analysts said in a note.
This wave of trade diplomacy follows President Trump’s recent announcement of a deal with Japan, which cut tariffs on Japanese imports from 25% to 15%. That move raised hopes that other countries might also secure favorable terms before the deadline, lifting global trade sentiment.
Reduced trade friction typically boosts economic activity and international shipping, thereby increasing demand for oil through higher fuel and energy consumption.
Supply Disruptions Add Support
On the supply side, investors were also digesting news from Russia. A Reuters report said the country is preparing a broader restriction on gasoline exports, including limits on oil producers, in an effort to control rising domestic fuel prices. Current restrictions apply only to fuel resellers.
These anticipated changes helped push oil prices higher on Thursday, reflecting fears of tighter global fuel supply.
Separately, Reuters reported that the U.S. may soon authorize limited oil activity in Venezuela, starting with Chevron Corp (NYSE:CVX). President Trump had earlier revoked several energy licenses in Venezuela, with a May deadline to end related transactions.
“This should see Venezuelan oil exports increase by a little more than 200k b/d, welcome news to US refiners that will ease some tightness in the heavier crude market,” ING analysts said.
As traders weigh these trade and supply dynamics, oil markets continue to respond to the evolving balance between geopolitical risk and macroeconomic momentum.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.