Brent And WTI Oil Extends Gains
Brent crude oil futures extended its recent gains to around $62.5 per barrel on Friday, following President Trump's threat of secondary sanctions against countries purchasing Iranian oil. The US has already imposed restrictions on several Chinese refineries for buying Iranian crude, as well as on numerous companies and vessels involved in its transportation. Adding to the positive sentiment, China signaled a willingness to resume trade talks with the US, raising hopes for a de-escalation in tensions between the world’s two largest oil consumers. However, oil remains on track for a weekly loss of over 5%, pressured by lingering risks from trade developments, demand concerns after US GDP data showed a contraction, and China’s worst factory slump in over two years. Expectations of increased supply from OPEC+ also weighed on prices, with Saudi Arabia indicating it can tolerate lower prices and may push for higher output at the upcoming May meeting.
WTI crude oil futures extended its recent gains to around $59.5 per barrel on Friday, following President Trump's threat of secondary sanctions against countries purchasing Iranian oil. The US has already imposed restrictions on several Chinese refineries for buying Iranian crude, as well as on numerous companies and vessels involved in its transportation. Adding to the positive sentiment, China signaled a willingness to resume trade talks with the US, raising hopes for a de-escalation in tensions between the world’s two largest oil consumers. However, oil remains on track for a weekly loss of over 5%, pressured by lingering risks from trade developments, demand concerns after US GDP data showed a contraction, and China’s worst factory slump in over two years. Expectations of increased supply from OPEC+ also weighed on prices, with Saudi Arabia indicating it can tolerate lower prices and may push for higher output at the upcoming May meeting.
Source: Trading Economi
