SINGAPORE: Oil prices rose on Friday as trade talk optimism supported the outlook for both the global economy and oil demand, outweighing news of the potential for more oil supply from Venezuela.
Brent crude futures touched a one-week high and were up 20 cents, or 0.29 percent, at $69.38 a barrel by 8:19 a.m. Saudi time. US West Texas Intermediate crude futures climbed 20 cents, or 0.30 percent, to $66.23.
Oil, along with stock markets, gained support from the prospect of more trade deals between the United States and trading partners ahead of an August 1 deadline for new tariffs on goods from an array of countries.
After the US and Japan unveiled a trade deal on Wednesday, two European diplomats said the EU was moving toward a deal involving a baseline US tariff of 15 percent on EU imports, plus possible exemptions.
“Trade talk optimism appears to be offsetting expectations for stronger Venezuelan supply,” ING analysts wrote in a client note on Friday.
