Oil prices continued to rise on Friday, driven by easing U.S.-China trade tensions and a recent trade agreement between the U.S. and the UK. Brent crude gained 1.30% to reach $63.66 per barrel, while WTI crude rose 1.4% to $60.75.
Hopes for progress in trade talks between the world’s top oil consumers were renewed as U.S. Treasury Secretary Scott Bessent prepared to meet China’s Vice Premier He Lifeng in Switzerland. Analysts suggest that even a temporary easing of tariffs could push oil prices up by $2–$3 per barrel.
Supporting this optimism, China reported stronger-than-expected exports in April and a 7.5% year-on-year rise in crude imports. Meanwhile, the U.S.-UK trade deal, which reduced some tariffs, was welcomed though considered limited in scope.
Despite bullish sentiment, downside risks persist. OPEC+ is set to increase production, and U.S. sanctions on Iranian crude continue to disrupt supply chains. Washington also targeted a third Chinese refinery for violating sanctions, while the UK plans to sanction up to 100 tankers linked to Russian oil exports.
On the geopolitical front, rising tensions between nuclear-armed India and Pakistan could further influence demand. Pakistan launched strikes along the Indian border, prompting forecasts of increased military fuel consumption but a decline in airline fuel use due to disrupted flights.