Oil prices rose on Friday after China signaled it was open to fresh trade talks with the United States, offering a glimmer of hope for easing tensions in the long-running tariff war.
Brent crude futures were up by 49 cents, or 0.8%, trading at $62.62 a barrel as of 04:46 GMT. U.S. West Texas Intermediate (WTI) crude gained 50 cents, or 0.8%, to reach $59.74.
China’s Commerce Ministry confirmed it was “evaluating” a proposal from Washington aimed at restarting negotiations.
The move raised hopes of progress in the strained U.S.-China relationship, which has had ripple effects across global markets, including the oil sector.“If Washington runs with it, as I expect it to, this could be a game-changer in the gloom-and-doom mood that has enveloped markets for weeks,” said Vandana Hari, founder of Vanda Insights, a market analysis firm.
“No one expects smooth sailing, but it’s an encouraging breakthrough.”The potential thaw comes amid broader fears that the trade war could spark a global recession, impacting oil demand just as OPEC+ prepares to boost supply.
Oil prices were further supported by recent remarks from U.S. President Donald Trump, who warned of possible secondary sanctions on countries buying Iranian oil.
Trump’s comments followed the delay of U.S.-Iran nuclear talks and underscored his commitment to the “maximum pressure” campaign aimed at curbing Iran’s oil exports.
On Thursday, oil had already risen nearly 2% by the session’s close, recovering from early-week losses.Meanwhile, internal discussions within OPEC+ signal growing momentum toward increasing output.
Saudi Arabia has reportedly told allies it won’t push for more cuts, and several members are expected to advocate for accelerated production hikes during a key meeting on May 5.
“With non-OPEC+ supply rising robustly and global demand growth facing structural decline, we see no natural re-entry point for these barrels,” said analysts from Fitch’s BMI unit. “Ultimately, the group will likely have to endure some price pain no matter when it unwinds its cuts.”
