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Oil prices climbed over 1% on Friday, with Brent crude and West Texas Intermediate (WTI) futures both posting weekly gains. The rise followed U.S. President Donald Trump's statement that China has agreed to purchase U.S. oil after talks with Chinese President Xi Jinping. Brent crude for July delivery rose 1.2% to $106.99 per barrel, while WTI for June delivery gained 1.3% to $102.50. Weekly gains saw Brent up about 6% and WTI surge over 7%, driven by ongoing geopolitical tensions in the Middle East and reduced U.S. supply concerns.
The price surge reflects renewed demand optimism and geopolitical risks. Traders are closely monitoring the potential for increased Chinese purchases of U.S. oil, which could ease supply concerns. The Middle East tensions remain a key risk factor, as any escalation could disrupt global oil flows. Additionally, the upcoming Baker Hughes U.S. oil and gas rig count data will provide insights into future production trends.
For markets, the weekly gains highlight the sensitivity of oil prices to geopolitical developments and trade negotiations. Investors should watch for further U.S.-China trade developments and OPEC+ production decisions. The Baker Hughes data release later today will also influence short-term price direction. Geopolitical risks in the Middle East remain a critical overhang for the energy market.
