Crude oil prices remained stable on Friday, buoyed by optimism surrounding international trade discussions, which helped balance concerns over increased oil output from Venezuela.
Brent crude futures Friday afternoon edged up by 28 cents (0.4%) to reach $69.46 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude saw an increase of 27 cents (0.41%) to $66.30 per barrel.
At these levels, Brent was on course for a 0.3% weekly gain, while WTI was down about 1.5% compared to last week’s close. Brent has largely stayed within a narrow price band of $67 to $70 per barrel over the past month, following a steep decline in June attributed to easing tensions in the Iran-Israel conflict.
“Oil prices are caught in a largely holding pattern brought about by inconclusive specific oil drivers,” Reuters quoting PVM analyst John Evans.
Investor confidence was also boosted by progress in trade negotiations, especially after the United States and Japan reached an agreement earlier in the week. European Union officials signalled movement towards a potential deal that would involve a baseline U.S. tariff of 15% on imports from the EU, with certain exceptions.
“Trade talk optimism appears to be offsetting expectations for stronger Venezuelan supply,” noted ING analysts in a Friday report.
Sources revealed that the U.S. government is preparing to authorise select partners of Venezuela’s state-owned oil company, PDVSA, starting with Chevron, to resume limited operations in the sanctioned country. This move could lift Venezuelan exports by over 200,000 barrels per day, offering relief to U.S. refiners facing tight supply in heavier crude markets.
Additional support for prices came earlier in the week due to temporary disruptions at the Black Sea and Ceyhan port in Turkey, which affected Azeri BTC crude flows.
“Delays in deliveries from the Russian terminal on the Black Sea and the Turkish port on the Mediterranean are likely to have contributed to the Brent oil price rising back towards $70. Now that exports are back to normal, support for prices is likely to ease,” commented Commerzbank analyst Carsten Fritsch.
Attention is now on the upcoming Joint Ministerial Monitoring Committee meeting of OPEC+ set for Monday at 1200 GMT. Four OPEC+ sources told Reuters that the group is expected to maintain its current strategy, which includes a planned increase of 548,000 barrels per day in August by eight member countries.
