WTI drifts higher to near $63.50 on trade deal hopes, fresh Iran sanctions

• WTI price extends the rally to a two-week high around $63.50 in Friday’s Asian session. 

• Trump expressed optimism about reaching a trade deal with the EU. 

• US sanctions on Iran raise supply concerns, boosting the WTI price.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $63.50 during the Asian session on Friday. The WTI price edges higher to a two-week high amid hopes for a trade deal between the United States and the European Union and fresh US sanctions on Iran. Trading volume is likely to be lightened on Good Friday.

US President Donald Trump and Italian Prime Minister Giorgia Meloni met in Washington, signaling hope for resolving trade disputes that have strained US-European ties. "We're going to have very little problem making a deal with Europe or anybody else, because we have something that everybody wants," Trump told reporters.

The new US sanctions to curb Iranian oil exports continued to elevate supply concerns and lift the WTI price. The statement noted that the US continues to aggressively sanction Iran under the Trump-era 'maximum pressure' policy. As long as Iran attempts to generate oil revenues to fund its destabilizing activities, the US will hold both Iran and all of its sanctions evaders responsible. 

"The U.S. continues to aggressively sanction Iran and impose sanctions against buyers of Iranian oil. OPEC+ has also provided updates and reassurance to the market, stating that they remain in control with flexibility to cut production if needed,” said analysts at energy consulting firm Gelber and Associates.

About the data, the Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the US for the week ending April 11 increased by 515,000 barrels, compared to a rise of 2.553 million barrels in the previous week. The market consensus estimated that stocks would increase by 400,000 barrels.