Oil prices saw modest gains on Friday as optimism surrounding a potential trade pact between the United States and the European Union combined with reports that Russia could limit gasoline exports to most countries.
Brent Crude futures rose by 17 cents, or 0.3%, to $69.35 per barrel, while U.S. West Texas Intermediate (WTI) crude futures advanced 15 cents, or 0.2%, to $66.18.
These increases followed a 1% uptick in prices on Thursday.
Russian Export Plans Bolster Market Sentiment
Traders responded to media reports suggesting that Russia is preparing to curb gasoline exports, a move expected to tighten supply in global markets.
The news helped offset broader concerns about potential global demand weaknesses and trade tensions that had previously weighed on oil prices.
Chevron’s Venezuelan Operations Draw Attention
Meanwhile, reports emerged that Chevron Corp may receive U.S. government approval to resume some operations in Venezuela, a sanctioned OPEC nation.
The Wall Street Journal reported that the Trump administration is considering allowing limited oil activity in Venezuela, although the scale and timeline remain uncertain.
Such a move could eventually increase oil supply, but for now, concerns about Russian restrictions are having a more immediate impact.
Encouraging Technical Signs and Inventory Draws Support Prices
Analysts expressed cautious optimism about the recent performance of crude futures.
“I am encouraged by the way crude oil held and bounced away from the $65/64 support band this week, which keeps hopes intact of a rebound back towards $70,” said Tony Sycamore, market analyst at IG.
U.S. government data offered further support for oil bulls.
The Energy Information Administration (EIA) reported that crude inventories fell by 3.2 million barrels last week, reaching 419 million barrels.
This decline exceeded analysts’ expectations of a 1.6 million-barrel draw, reinforcing views of tightening supply in the U.S.
EU-U.S. Trade Negotiations Back in Focus
Adding to the bullish outlook, there are growing signs of progress on a potential trade agreement between the EU and the United States.
Two European diplomats revealed that both parties are discussing a framework that could include a 15% baseline U.S. tariff on EU goods, alongside possible exemptions.
This development comes on the heels of a successful U.S.-Japan deal and could lead to further liberalization of trade terms, which in turn would support global economic growth and energy demand.
Investors Eye Key Data From U.S. and China
Markets are now turning their attention to a wave of upcoming economic data from the world’s two largest economies.
Investors are particularly interested in factory activity results from China and key U.S. indicators, including inflation rates, employment figures, and inventory levels.
“It is a big week next week data-wise,” said IG’s Sycamore, highlighting how these reports could shape near-term oil market direction.
Outlook Hinges on Supply and Economic Signals
With geopolitical factors, supply signals, and macroeconomic data all influencing sentiment, oil markets remain on edge.
A breakthrough in U.S.-EU trade negotiations or further signs of restricted Russian exports could continue to lift prices.
At the same time, the possibility of expanded Venezuelan production and uncertain economic signals may cap gains.
Traders and analysts alike will be watching closely for the next moves.