Oil prices rose Friday, capping a second straight weekly gain, as U.S.-China trade tensions eased—but gains were limited by supply concerns from Iran and OPEC+. Brent crude settled up 88 cents (+1.4%) at $65.41 per barrel, while U.S. West Texas Intermediate (WTI) rose 87 cents (+1.4%) to $62.49. For the week, Brent climbed 2.3% and WTI gained 2.5%, despite a sharp drop in the prior session.
Despite the supply risks, sentiment improved throughout the week after the U.S. and China—the world’s top two oil consumers—agreed to a 90-day pause in their trade war, boosting demand optimism. Analysts, however, warned that longer-term uncertainty could cap price upside.
OPEC+ production remains a wildcard. While the group continues ramping up supply, weak demand could leave the market oversupplied. Dennis Kissler of BOK Financial noted that strong summer travel demand will be key to balancing rising output.
Geopolitical developments added complexity. Russia and Ukraine failed to reach a ceasefire, and Israel launched new strikes on Houthi targets in Yemen, heightening concerns over supply security in the region.
On the U.S. supply front, Baker Hughes reported a 2-rig drop, bringing the rig count to 576, the lowest since January 24, 2025. Meanwhile, the U.S. dollar strengthened, bolstered by higher import prices and weak consumer sentiment, which can pressure oil by making it more expensive for foreign buyers.