Oil prices remained stable on Friday, offering some relief after a turbulent week driven by geopolitical tensions and trade concerns. Traders are now watching closely for signs of easing in the US-China trade conflict, a key factor influencing oil prices globally.
Market Reaction Ahead of OPEC+ Talks
Brent crude fell by 14 cents to $61.99 per barrel, while US West Texas Intermediate (WTI) dropped 15 cents to $59.09. Despite Friday’s steadiness, Brent was set for a weekly loss of 7.3% and WTI 6.2%, marking one of the sharpest weekly drops in months.
Trade Tensions Show Signs of Cooling
The Chinese Commerce Ministry announced on Friday that it is reviewing a proposal from Washington to restart trade negotiations. This signals a potential thaw in the trade war that has rattled global markets and weighed heavily on oil demand forecasts.
“There’s cautious optimism about US-China talks, but nothing concrete yet,” noted Harry Tchilinguirian, Head of Research at Onyx Capital Group.
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Iran Sanctions Add Complexity
Further complicating the global oil landscape are the renewed US sanctions on Iran. President Trump has threatened secondary sanctions on countries buying Iranian crude—an issue that directly affects China, the largest importer of Iranian oil. These actions have stalled US-Iran nuclear negotiations and reignited tensions in the region.
Recession Fears Still Loom
Despite signs of diplomatic engagement, investors remain wary. The broader trade dispute between the US and China continues to pose a risk to global economic stability. A prolonged standoff could trigger a slowdown in industrial activity and reduce global oil consumption.
For now, the market is caught between cautious hope and persistent fear, with oil prices reflecting that uncertainty. All eyes are now on the upcoming OPEC+ meeting and any movement in US-China talks that could shift market sentiment.
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