Oil prices rose on Friday after three weeks of decline, with Nigeria’s Brent futures up 44 cents, or 0.6%, at $75.46 a barrel by 0755 GMT, while U.S. West Texas Intermediate (WTI) crude gained 37 cents, or 0.5%, to $71.66.
For the week, both contracts were headed for gains of about 1%.
“Positive development on the trade front in light of U.S. tariff delays paves the way for some recovery in oil prices this morning, as the risk environment warms up to the prospects of further trade consensus being reached,” said Yeap Jun Rong, a market strategist at IG.
“However, gains in oil prices may seem limited as market participants have to digest the prospects of Russian supplies being brought back on the market amid potential Ukraine-Russia peace talks,” Yeap said.
A potential peace deal between Russia and Ukraine kept would lead to the lifting of sanctions on Moscow which could boost global energy supplies.
Russian oil exports could be sustained if workarounds to the latest U.S. sanctions package are found, after Russian crude production rose slightly last month, the International Energy Agency (IEA) said in its latest oil market report.
Meanwhile, global oil demand has surged to 103.4 million barrels per day, a 1.4 million bpd increase year-over-year, analysts at JPMorgan said in a report on Friday.
“Initially sluggish, demand for mobility and heating fuels picked up in the second week of February, suggesting the gap between actual and projected demand will soon narrow,” JPMorgan said.
“Heating fuel use is expected to rise again. Additionally, soaring gas prices in Europe could prompt a shift from gas to oil, boosting demand.”
