Oil Prices Rebound on China-US Trade Talk Hopes, but Weekly Losses Loom

Oil prices edged higher in Asian trading Friday, supported by renewed hopes for China-U.S. trade talks that may ease tensions between the world’s top two oil consumers. Brent crude futures rose 0.8% to $62.62 per barrel, while West Texas Intermediate (WTI) gained 0.9% to $59.19 by 02:11 GMT. However, both benchmarks remain down between 5% and 7% for the week, marking a second straight week of losses amid ongoing demand concerns.

China's commerce ministry signaled openness to resuming trade negotiations, stressing that any talks must be sincere and contingent on the removal of U.S. tariffs. This followed reports of outreach from U.S. officials and growing signs of Washington’s willingness to deescalate the trade dispute. The prolonged trade war had previously weighed heavily on crude prices, with mutual tariffs exceeding 100% and raising fears of reduced global oil demand.

Further pressuring the market, weak economic indicators from both the U.S. and China this week fueled concerns over slowing growth and energy consumption. Analysts remain cautious ahead of the upcoming OPEC+ meeting on May 5, where the group is expected to announce production hikes. Saudi Arabia, OPEC’s key member, has reportedly indicated reluctance to maintain deeper supply cuts, while several member nations plan to increase output from June.

Despite bearish signals, U.S. President Donald Trump’s threats of secondary sanctions on Iranian oil buyers and new sanctions on Tehran offered temporary support to prices. These geopolitical developments, coupled with the OPEC+ decision and trade negotiation progress, will be key drivers for oil markets in the near term.