Oil continues to climb amid indications of the decline in commercial tensions

Oil prices increased slightly during early trading today, Friday, after more than 3 % jumped in the last session, amid indications of the decline in trade tensions between the United States and China, the largest oil consumers, and Britain’s announcement of a trade agreement “achieving a breakthrough” with the United States.

During trading, Brent crude futures rose 7 cents, equivalent to 0.1 %, to reach $ 62.91 a barrel.

The US West Texas Intermediate crude also rose 7 cents, equivalent to 0.1 % to $ 59.98 a barrel. During the settlement on Thursday, Brent crude rose 2.8 %, and West Texas Intermediate crude increased 3.2 %.

US Treasury Secretary, Scott Besent, is scheduled to meet with Vice President of the State Council, Lee Feng, the highest economic official in China, in Switzerland tomorrow, Saturday, to resolve commercial conflicts that threaten the growth of crude oil consumption.

US President Donald Trump and British Prime Minister Kiir Starmer announced, separately, that Britain had agreed to reduce customs duties on American goods from 5.1 % to 1.8 %.

The United States has reduced customs duties on British cars, but it kept 10 % customs duties on most other commodities.

On the other hand, the Organization of Petroleum Exporting Countries (OPEC) and its allies are planning in what is known as the OPEC+ group to increase production to continue to pressure oil prices.
A Reuters survey showed a slight decrease in OPEC production in April, as low production in Libya, Venezuela and Iraq dispensed the increase in production.

The tightening of US sanctions on Iran may reduce the supply and push prices to rise. Sources told Reuters on Thursday that the sanctions imposed on two small Chinese lines to buy Iranian oil made it difficult for them to obtain crude oil, which led them to sell their products with alternative names.