Oil prices experienced a notable uptick on Friday, climbing nearly 2% and marking their first weekly increase since mid-April. This surge in prices has been largely attributed to renewed investor optimism stemming from a recent U.S.-U.K. trade agreement, just ahead of critical discussions between high-ranking officials from Washington and Beijing.
Brent and WTI Prices Rise
Brent crude futures gained $1.07, settling at $63.91 per barrel, representing a 1.7% increase. Meanwhile, U.S. West Texas Intermediate (WTI) crude saw an increase of $1.11, or approximately 1.9%, closing at $61.02. Over the past week, both benchmarks recorded impressive gains of over 4%, signaling a positive shift in the energy market.
Trump’s Trade Remarks Fuel Optimism
In a statement on Friday, U.S. President Donald Trump urged China to open its markets to American goods and expressed that an 80% tariff on Chinese imports "seems appropriate." This announcement followed Trump’s declaration of a deal that would reduce tariffs on British car and steel exports, among other arrangements with the United Kingdom.
- Key price movements:
- Brent crude: $63.91 (+1.7%)
- WTI crude: $61.02 (+1.9%)
- Weekly increase: Over 4% for both benchmarks
Positive Trends in Energy Markets
According to oil analyst Alex Hodes from brokerage StoneX, the energy sector, previously weighed down by bearish sentiments, is beginning to shake off pessimism. Hodes noted that this shift aligns with a broader market optimism as progress in trade negotiations emerges. The recent U.K. trade agreement and Trump’s comments regarding China have sparked hopes for similar negotiations between Washington and Beijing.
In line with these developments, U.S. Treasury Secretary Scott Bessent is scheduled to meet with China’s Vice Premier He Lifeng in Switzerland on May 10. Notably, current tariffs on Chinese imports from the U.S. stand at a staggering 145%.
In summary, the latest trade developments and a slight rebound in oil prices could indicate a more favorable climate for energy markets, as key players engage in vital discussions that may reshape future trade relations.
