Oil fell on Friday, but shows the first weekly increase in three weeks
6 June 2025 09:34
Oil prices fell slightly on Friday, but remain on track for their first weekly increase in three weeks after US President Donald Trump and Chinese leader Xi Jinping resumed trade talks. This has raised hopes for economic growth and stronger demand in the world’s two largest economies, "Komersant Ukrainian" reports citing Reuters.
Futures for Brent crude oil fell 19 cents, or 0.3%, to $65.15 per barrel as of 06:41 Kyiv time. U.S. West Texas Intermediate lost 20 cents, also 0.3%, to $63.17, after rising about 50 cents on Thursday.
On a weekly basis, both benchmark crudes are on track to close in the black after two consecutive weeks of declines. Brent is up 2.1% this week, while WTI is trading 4% higher compared to the start of the week.
The resumption of dialogue between the US and China
China’s official Xinhua news agency reported that the trade talks between Xi Jinping and Trump took place at Washington’s request. Trump said that the conversation led to a “very positive conclusion,” adding that the United States “is in a very good relationship with China on a trade agreement.”
Canada is also continuing trade talks with the United States, with Prime Minister Mark Carney in direct contact with Trump, according to Industry Minister Melanie Joly.
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Oil market volatility
The oil market continues to fluctuate depending on news of tariff negotiations and data showing how trade uncertainty and the impact of US tariffs are spreading to the global economy.
“The potential for tighter US sanctions against Venezuela, which would limit crude exports, and the possibility of an Israeli strike on Iranian infrastructure add to the upside risks to prices,”
– analysts at BMI, a subsidiary of Fitch, said in a note on Friday.
“However, both weaker oil demand and increased production from OPEC and non-OPEC producers will put downward pressure on prices in the coming quarters.”
– the experts added.
Saudi Arabia’s strategy
The world’s largest oil exporter, Saudi Arabia, cut its July crude oil prices for Asia to the lowest in almost two months. This was a smaller price cut than expected after OPEC agreed to increase production by 411,000 barrels per day in July.
The kingdom has been lobbying hard for more production increases as part of a broader strategy to regain market share and discipline overproducers within OPEC.
Market analysts are monitoring further developments in trade negotiations between the world’s leading economies, as this could have a significant impact on global energy demand and oil price dynamics in the coming months.
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