Oil prices edged higher on Friday, though both major benchmarks posted weekly losses amid concerns over rising global supply and persistent uncertainty surrounding U.S.-China trade negotiations. Brent crude futures settled at $66.87 per barrel, a daily gain of $0.32 or 0.48%, but marked a 1.6% decline over the week. West Texas Intermediate (WTI) crude rose $0.23, or 0.37%, to $63.02 per barrel, ending the week down 2.6%.
Market sentiment was influenced by signs of a possible de-escalation in the ongoing trade war after China announced limited exemptions for U.S. imports from existing tariffs. However, optimism faded quickly as Chinese officials refuted President Trump’s claims that negotiations were actively progressing, casting fresh doubt over any near-term resolution. The prolonged trade tensions continue to weigh on expectations for global economic growth and oil demand.
Meanwhile, speculation grew that OPEC+ may accelerate its planned output increases starting in June. Some members of the alliance have reportedly been pushing for more aggressive production hikes, which could exacerbate concerns about oversupply. At the same time, geopolitical developments added another layer of complexity to market dynamics. Russian President Vladimir Putin and Trump’s special envoy, Steve Witkoff, held a three-hour meeting on Friday described as “constructive,” raising the possibility of progress in ending the war in Ukraine. A resolution could open the door for increased Russian oil exports, further pressuring prices.