Traders eye Iran, OPEC+ output as key factors ahead
HOUSTON – Oil prices rose on Friday, marking their second straight weekly gain, as easing tensions between the US and China boosted investor confidence. However, expectations of increased global supply continue to put pressure on the market.
Brent crude settled 88 cents higher at $65.41 per barrel, while US West Texas Intermediate (WTI) climbed 87 cents to close at $62.49. For the week, Brent gained 1%, and WTI rose 2.4%, despite recent volatility.
The potential return of Iranian oil following progress on nuclear talks and possible OPEC+ output hikes kept gains in check. “With Iranian crude possibly returning and OPEC+ increasing output, bearish trends have re-emerged,” said Dennis Kissler of BOK Financial.
On the political front, President Trump said a nuclear deal with Iran is nearing, although sources familiar with the discussions noted unresolved issues. ING analysts estimate that lifting sanctions could add around 400,000 barrels per day of Iranian oil to the market.
Meanwhile, improved US-China relations helped support prices. The two countries agreed to a 90-day pause on their trade war, lowering tariffs temporarily and offering hope for global economic stability. However, analysts caution that long-term uncertainty may cap oil price growth.
Tensions elsewhere also influenced the market. Talks between Russia and Ukraine failed to produce a ceasefire, and Israel continued strikes on Houthi targets in Yemen. On the US front, active oil rigs dropped by one to 473, signaling a slight slowdown in domestic output growth.