ANKARA

Oil prices rose on Friday amid renewed optimism surrounding trade talks between the US and China, though gains were limited due to increased production from the OPEC+ alliance and the potential for a ceasefire in the Russia-Ukraine conflict.

International benchmark Brent crude rose by around 0.5%, trading at $66 per barrel at 10.01 am local time (0701 GMT), up from $65.68 at the previous session's close.

US benchmark West Texas Intermediate increased by about 0.6%, reaching at $63.03 per barrel, compared to its prior session close of $62.64.

Market sentiment improved after US President Donald Trump claimed that tariff negotiations with China were ongoing, despite repeated denials from Beijing. Trump said in his latest remarks that talks were actively taking place, fueling hopes of a breakthrough in the prolonged trade standoff.

Meanwhile, US Treasury Secretary Scott Bessent added further optimism by suggesting that negotiations with South Korea were advancing more rapidly than expected. “We may be moving faster than I thought,” Bessent said on Thursday, after a bilateral meeting, adding that technical discussions could begin as early as next week.

Still, concerns over a potential oversupply in global oil markets weighed on further gains. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, have ramped up output this month and are expected to maintain that pace into June.

Eight key producers -- Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman -- are scheduled to meet on May 5 to review production levels and discuss future policy.

In addition, diplomatic developments involving the Russia-Ukraine conflict and ongoing nuclear negotiations with Iran are adding to market uncertainty and stoking fears of increased oil supply.

In Moscow, Russian Foreign Ministry spokesperson Maria Zakharova confirmed that dialogue between the US and Russia on resolving the Ukraine crisis is ongoing, with both sides pursuing a long-term solution.