Oil prices experienced a notable surge on Thursday, climbing over 3% due to mounting optimism surrounding a potential trade agreement between the United States and the European Union. Additionally, newly imposed U.S. sanctions aimed at reducing Iranian oil exports contributed to growing concerns about oil supply. This combination of factors sent Brent crude futures soaring by $2.11, which translates to a 3.2% increase, closing at $67.96 per barrel. Meanwhile, West Texas Intermediate (WTI) crude rose by $2.21, or 3.54%, ending the day at $64.68 per barrel.
Weekly Performance Highlights
Both Brent and WTI crude saw an impressive rise of approximately 5% for the week, marking their first weekly gain in three weeks. This increase comes just ahead of the Easter holidays, a time when trading volumes are typically lower.
Trade Talks Foster Optimism
During a meeting in Washington, U.S. President Donald Trump and Italian Prime Minister Giorgia Meloni expressed a positive outlook regarding the resolution of ongoing trade disputes that have strained transatlantic relations. "We are confident that we can reach a deal with Europe and others, as we have something everyone desires," Trump stated, reflecting a hopeful sentiment.
Implications for Oil Demand
Industry experts, including Bob Yawger, director of energy futures at Mizuho, suggest that finalizing a trade agreement with the EU could mitigate potential demand loss for oil stemming from tariffs imposed by the U.S. This could play a crucial role in stabilizing market conditions.
- Key Takeaways:
- Oil prices rose sharply on Thursday, driven by trade deal optimism.
- Brent crude gained 3.2%, while WTI climbed 3.54%.
- Weekly gains for both benchmarks reached about 5%.
- Potential trade agreements could influence oil demand and market stability.
As the market looks ahead, traders will be keenly watching developments in U.S.-EU relations and their impact on oil supply and pricing.
