Oil prices rise amid US-China trade optimism while OPEC+ output hike caps gains
Oil prices rose on Friday amid renewed optimism surrounding trade talks between the US and China, though gains were limited due to increased production from the OPEC+ alliance and the potential for a ceasefire in the Russia-Ukraine conflict.
International benchmark Brent crude rose by around 0.5%, trading at $66 per barrel at 10.01 a.m. local time (0701 GMT), up from $65.68 at the previous session’s close.
US benchmark West Texas Intermediate increased by about 0.6%, reaching at $63.03 per barrel, compared to its prior session close of $62.64.
Despite denials from Beijing, US President Donald Trump claimed that tariff negotiations with China were ongoing. The overall optimism regarding trade talks continues to influence market sentiment. In his latest remarks, Trump reiterated that discussions with China were taking place.
Following tariff disputes, the US administration is also pursuing negotiations with other countries. On Thursday, US Treasury Secretary Scott Bessent stated that trade talks with South Korea might be progressing faster than anticipated.
‘We had a very successful bilateral meeting with the Republic of South Korea today. We may be moving faster than I thought, and we will be talking technical terms as early as next week as we reach an agreement on understanding as soon as next week,’ Bessent said.
However, growing concerns over a potential oversupply in the oil market are curbing further price increases. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, have ramped up production this month and are expected to continue doing so into June.
Eight key producers—Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman—are scheduled to meet on May 5 to discuss future output levels.
Additionally, US diplomatic efforts concerning the Russia-Ukraine conflict and ongoing nuclear deal negotiations with Iran are also raising oversupply concerns.
During her weekly press conference in Moscow on Thursday, Russian Foreign Ministry Spokesperson Maria Zakharova stated that dialogue with the US on resolving the Ukraine crisis is ongoing, and that both countries are seeking a long-term solution.
By Duygu Alhan
