Oil headed for a weekly decline as investors weighed conflicting messages on trade between the US and China, adding uncertainty to global markets roiled by President Donald Trump’s tariffs.
Brent edged higher toward $67 a barrel on Friday, but futures are down almost 2% this week. West Texas Intermediate was near $63. The US president said on Thursday that his administration was talking with China on trade, despite Beijing earlier denying the existence of negotiations on a deal.
Oil has dropped sharply this month on concerns that Trump’s sweeping tariffs and retaliatory measures from trading partners including China will cripple economic activity and throttle energy demand. In an effort to reassure US oil firms, Energy Secretary Chris Wright said that the trade turmoil will be fleeting and the administration fully supports more crude output.
OPEC+ has added to the bearish headwinds by ramping up idled oil production, stoking fears of oversupply. The group will meet on May 5 to discuss its output plans for June, and Reuters reported this week that some members are seeking a bumper increase as a dispute over quota compliance worsens.
Still, some metrics are pointing to near-term strength in the oil market. The prompt spreads for global benchmark Brent and WTI have widened this month in a bullish backwardation structure, signaling tight supply.
Prices:
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Brent for June settlement rose 0.4% to $66.79 a barrel at 8:48 a.m. in Singapore.
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WTI for June delivery gained 0.4% to $63.03 a barrel.
. Read more on Markets by NDTV Profit.Brent edged higher toward $67 a barrel on Friday, but futures are down almost 2% this week. Read MoreMarkets, Business, Bloomberg
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