Oil to snap three-week losing streak amid US tariff delays
Oil prices rose on Friday, poised to end three weeks of decline, buoyed by rising fuel demand and expectations that U.S. plans for global reciprocal tariffs would not come into effect until April, giving more time to avoid a trade war.
Brent futures were up 44 cents, or 0.6%, at $75.46 a barrel by 0755 GMT, while U.S. West Texas Intermediate (WTI) crude gained 37 cents, or 0.5%, to $71.66. For the week, both contracts were headed for gains of about 1%.
U.S. President Donald Trump on Thursday ordered commerce and economics officials to study reciprocal tariffs against countries that place tariffs on U.S. goods and to return their recommendations by April 1.
"Positive development on the trade front in light of U.S. tariff delays paves the way for some recovery in oil prices this morning, as the risk environment warms up to the prospects of further trade consensus being reached," said Yeap Jun Rong, a market strategist at IG.
"However, gains in oil prices may seem limited as market participants have to digest the prospects of Russian supplies being brought back on the market amid potential Ukraine-Russia peace talks," Yeap said.
A potential peace deal between Russia and Ukraine kept traders concerned that an end of sanctions on Moscow could boost global energy supplies.
Trump ordered U.S. officials this week to begin talks on ending the war in Ukraine, after Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy expressed a desire for peace in separate phone calls with him.
Source: Reuters
