Oil prices rose on Friday, buoyed by optimism over a potential trade deal between the U.S. and the European Union and reports of Russian plans to restrict gasoline exports to most countries.
Brent crude futures gained 17 cents, or 0.3%, to $69.35 a barrel by 0027 GMT. U.S. West Texas Intermediate crude futures climbed 15 cents, or 0.2%, to $66.18 per barrel.
Oil settled 1% higher on Thursday, driven by media reports of expected cuts to Russian gasoline exports. This overshadowed news of Chevron Corp potentially securing U.S. approval to resume production in Venezuela.
President Donald Trump's administration is preparing to allow limited oil operations in the sanctioned OPEC nation, the Wall Street Journal reported.
U.S. crude inventory draws and hopes for a trade deal between the U.S. and the EU for lower tariffs were lifting futures, which fell earlier in the week over fears of a worsening global trade war.
"I am encouraged by the way crude oil held and bounced away from the $65/64 support band this week, which keeps hopes intact of a rebound back towards $70," said Tony Sycamore, an analyst at IG.
U.S. Energy Information Administration data on Wednesday showed crude inventories fell last week by 3.2 million barrels to 419 million barrels, far exceeding analysts' expectations in a Reuters poll for a 1.6 million-barrel draw. [EIA/S]
Two European diplomats said on Wednesday that the EU and the U.S. were moving toward a trade deal that could include a 15% U.S. baseline tariff on EU imports and possible exemptions. That could pave the way for another major trade agreement following a deal with Japan.
Investors will also be turning their focus to upcoming economic data next week from the world's top two economies and largest oil consumer - factory activity data from China and key U.S. indicators such as inflation, jobs and inventory data.
"It is a big week next week data-wise," IG's Sycamore said.
Source Name : Economic Times