Oil prices held steady on Friday following notable losses in the prior session but remained on track for weekly gains, buoyed by a strong start to the week after the U.S. and China agreed to a temporary rollback of their elevated trade tariffs.
As of 08:00 ET (12:00 GMT), Brent crude rose 0.4% to $64.77 per barrel, while U.S. West Texas Intermediate (WTI) inched up 0.3% to $61.83 per barrel.
U.S.-Iran Nuclear Deal Nearing Completion
Prices had slumped over 2% on Thursday after President Donald Trump signaled that a nuclear deal with Iran was close, stating Tehran had “sort of” accepted the terms.
NBC News also reported that Iran may be ready to sign the agreement, contingent on the full removal of economic sanctions, citing senior adviser Ali Shamkhani.
Should sanctions be lifted, Iran could significantly ramp up oil exports, tipping the global supply-demand balance. ING analysts noted that easing supply fears could bring roughly 400,000 barrels per day back to the market.
IEA Expects More Oil in 2025
The International Energy Agency (IEA) said Thursday that global oil production is likely to increase faster than previously anticipated in 2025 as OPEC+ gradually lifts production limits.
The IEA forecasts a 1.6 million barrels per day increase in supply this year, with another 970,000 bpd added in 2026. Meanwhile, demand growth is expected to decelerate from 990,000 bpd in Q1 to 650,000 bpd for the rest of the year.
“Early indicators suggest global oil demand growth is cooling, and we’ll be monitoring that closely,” the IEA said.
Weekly Gains Still in Sight
Despite concerns over rising supply, both Brent and WTI are up roughly 1.5% for the week.
Market confidence improved after the U.S. and China—the world’s two largest oil consumers—agreed to a 90-day truce in their trade dispute, slashing tariffs on each other’s goods. The previously heightened duties had stoked fears of weakened global growth and diminished oil demand.
