Oil prices declined marginally on Friday, but both Brent and West Texas Intermediate (WTI) crude benchmarks posted their first weekly gains in three weeks as renewed U.S.-China trade negotiations improved market sentiment and demand outlook.
Brent crude oil, against which Nigerian oil is priced, fell by 11 cents or 0.2% to $65.23 per barrel as of 07:34 a.m. in Nigeria, while WTI dropped 12 cents or 0.2% to $63.25 after advancing by approximately 50 cents in the previous session.
Brent crude posted a 2.1% gain this week, and WTI climbed 4%, a reversal after two consecutive weeks of losses.
The upward movement was supported by reports that U.S. President Donald Trump and Chinese President Xi Jinping held renewed trade talks at Washington’s request. China’s state media agency Xinhua confirmed the meeting, while President Trump described the conversation as resulting in a “very positive conclusion.”
Analysts attributed the recovery in oil prices to the potential for increased global demand driven by easing trade tensions between the world’s two largest economies.
“The resumption of high-level trade communication between the U.S. and China has provided a short-term bullish trigger for oil markets,” a note from BMI, a Fitch Ratings affiliate, stated on Friday.
In parallel, Canada also resumed trade discussions with the United States. Canadian Prime Minister Mark Carney reportedly maintained direct contact with President Trump, according to Industry Minister Melanie Joly.
Meanwhile, Saudi Arabia reduced its official selling prices for July crude deliveries to Asia to their lowest levels in nearly two months. The smaller-than-expected price cut follows OPEC+’s decision to increase output by 411,000 barrels per day in July.
The production hike is part of a broader effort by Saudi Arabia to regain market share and enforce discipline among overproducing members within the OPEC+ alliance.
Market analysts have noted that bullish momentum from trade developments is being tempered by broader supply-side concerns.
“While U.S.-China trade progress offers near-term support, downside pressure remains due to rising output from OPEC+ and non-OPEC producers, as well as weaker global oil demand projections,” BMI added.
Geopolitical risks are also influencing price dynamics. There are concerns about potential further U.S. sanctions on Venezuela, which may limit the country’s crude exports.
Additionally, the possibility of Israeli strikes on Iranian infrastructure continues to pose upside risk to oil prices.
Despite the day’s losses, the overall market trend remained positive for the week, driven by a combination of geopolitical considerations and improved demand prospects.
However, market participants remain cautious as global supply growth and uncertain economic indicators continue to weigh on long-term pricing.
