HOUSTON — Oil settled higher on Friday, notching a second straight week of gains on easing US-China trade tensions, although prices were held back by expectations of higher supply from Iran and OPEC+.
Brent crude futures settled up 88 cents, or 1.4 percent, at $65.41 per barrel, while US West Texas Intermediate crude futures closed 87 cents, or 1.4 percent higher at $62.49.
The benchmarks posted a weekly rise of 1 percent and 2.4 percent respectively.
The contracts fell by more than 2 percent in the previous session on the prospect of an Iranian nuclear deal, which could result in an easing of sanctions that could see Iranian crude return to the global market.
“Expected increases in OPEC+ oil production along with a more probable Iranian nuclear agreement has re-surfaced the bear trade,” said Dennis Kissler, senior vice president of trading at BOK Financial.
“Near term, with geopolitical temperatures cooling, a strong seasonal travel demand will be needed in the coming months to counter the expected rises in supplies,” Kissler added.
US President Donald Trump said on Thursday the US was nearing a nuclear deal with Iran, with Tehran “sort of” agreeing to its terms. However, a source familiar with the talks said there were still issues to resolve.
ING analysts wrote in a note that a nuclear deal lifting sanctions would allow Iran to increase oil output, resulting in additional supply of around 400,000 barrels per day.
