Oil prices edged higher in early Asian trading on Friday, buoyed by optimism over improving U.S.-China relations and potential supply constraints.
Brent crude futures climbed 38 cents (0.6%) to $62.51 per barrel, while U.S. West Texas Intermediate (WTI) crude also rose 38 cents (0.6%) to $59.62 a barrel as of 0136 GMT.
The gains followed remarks from China’s commerce ministry indicating that the U.S. had initiated communication channels, signaling a possible softening of trade tensions. The long-running dispute between the world’s two largest economies has fueled fears of a global recession, curbing oil demand just as OPEC+ prepares to increase production.
China, the largest crude importer globally, plays a significant role in oil market sentiment. News of potential progress in trade talks helped offset bearish pressures from expected OPEC+ output hikes.
Further supporting oil prices was renewed geopolitical risk. U.S. President Donald Trump threatened secondary sanctions on countries purchasing Iranian oil, a move that raised concerns over tightening global supply. Trump’s warning came after delaying talks with Iran on its nuclear program and reiterating his “maximum pressure” policy, aimed at curbing Tehran’s oil exports and nuclear ambitions.
Late Thursday, crude futures had already rebounded nearly 2% on the back of Trump’s remarks, paring earlier losses driven by expectations of more supply from the OPEC+ alliance.
According to Reuters, Saudi Arabia—the leading voice in OPEC+—has indicated it does not plan to make additional output cuts to support prices. Meanwhile, several member nations are pushing to accelerate production increases for a second straight month. Eight OPEC+ countries are scheduled to meet on May 5 to finalize their production strategy for June.
