Oil prices rose on Friday as U.S. traders covered short positions ahead of the Memorial Day weekend, while concerns over stalled nuclear negotiations between the U.S. and Iran added to supply uncertainty.
Brent crude settled at $64.78 per barrel, up 34 cents or 0.54%, while U.S. West Texas Intermediate (WTI) gained 33 cents, also 0.54%, to close at $61.53.
The gains were partly driven by pre-holiday positioning, with Memorial Day marking the start of peak U.S. summer driving season and typically stronger fuel demand. Analysts cited short-covering as a key factor behind Friday’s rally.
Meanwhile, nuclear talks between American and Iranian officials resumed in Rome. Traders worried that a breakdown in negotiations could lead to heightened tensions or even military action, potentially disrupting Iranian oil exports. Fears that a failed deal might prompt an Israeli strike on Iran also weighed on sentiment.
Further market pressure came from geopolitical developments. President Trump proposed a 50% tariff on EU imports starting June 1, raising concerns about broader trade tensions and their possible drag on global oil demand.
Looking ahead, all eyes are on next week’s OPEC+ meetings. The group is expected to approve another production hike of 411,000 barrels per day for July. Reports also suggest OPEC+ could fully phase out its 2.2 million bpd voluntary cut by October, having already raised output significantly through the spring.