WTI price steadies after surging nearly 4% on Thursday.
Easing trade tensions between major Oil consumers provides support for the Oil.
Oil prices face headwinds as OPEC+ signals plan to boost production.
West Texas Intermediate (WTI) crude Oil price edges lower during Asian trading hours on Friday, trading near $59.80 per barrel after posting a nearly 4% gain in the previous session. The rally was fueled by easing trade tensions between major Oil consumers—the United States (US) and China—and the announcement of a “breakthrough” trade deal between the US and the United Kingdom.
US Treasury Secretary Scott Bessent is scheduled to meet with China’s Vice Premier He Lifeng in Switzerland on May 10, aiming to address ongoing trade disputes that have dampened global crude Oil demand.
In a separate development, US President Donald Trump and British Prime Minister Keir Starmer suggested that the United Kingdom (UK) has agreed to reduce tariffs on US imports to 1.8% from 5.1%. The US, in turn, cut tariffs on British automobiles while maintaining a 10% duty on most other goods.
Despite the recent gains, Oil prices face significant headwinds. OPEC and its allies (OPEC+) are planning to increase Oil production, which may weigh on prices. According to a Reuters survey, OPEC's total output declined slightly in April as lower production in Libya, Venezuela, and Iraq offset planned increases elsewhere.
Meanwhile, US sanctions on two smaller Chinese refiners—accused of purchasing Iranian crude—have disrupted their operations, with sources indicating the refiners are now selling products under different names. This marks an escalation in Washington’s pressure campaign against Iran, as the US seeks to curtail Tehran’s Oil revenues and push for renewed nuclear negotiations.
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