Oil prices rose on Friday following US President Donald Trump’s decision to suspend tariffs on some trade partners for 90 days, while the ongoing US-China trade dispute, alongside rising US oil inventories, weighed on price movements, raising concerns about global oil demand.
International benchmark Brent crude rose by around 0.1%, trading at $63,29 per barrel at 11.02 a.m. local time (0802 GMT), up from $65.23 at the previous session's close.
US benchmark West Texas Intermediate increased about 0.01%, settling at $59,86 per barrel, compared to its prior session close of $59,85.
Trump’s announcement on Wednesday to pause additional tariffs for many countries, including Japan, at 10% for 90 days, had initially raised hopes of easing demand concerns and supported a temporary uptick in oil prices on Friday.
However, the trade tensions between the US and China, which remain unresolved, continue to limit upward price movements.
Tensions escalated this week after Trump increased tariffs on Beijing from 84% to 125%, adding to a previous 20% tariff, bringing the overall rate on China to 145%. In retaliation, China imposed its own 84% tariffs, effective Thursday. Market participants are particularly concerned about the impact on China, the world’s largest oil importer, fearing that these tariffs could further suppress demand for oil.
Despite this, Trump expressed a desire to strike a deal with China, fueling optimism that the global trade war could eventually come to an end and ease demand concerns.
In addition, the US Energy Information Administration (EIA) revised its 2025 price forecast for Brent crude downward, citing the expected rise in global oil inventories.
According to the EIA’s latest Short-Term Energy Outlook (STEO) released late Thursday, the average Brent crude price for 2025 is now expected to be $67.87 per barrel, down from the previous forecast of $74.22. The forecast for West Texas Intermediate was also revised lower, from $70.68 to $63.88 per barrel.
Global oil inventories are projected to rise by an average of 600,000 barrels per day (bpd) in Q2 2025, and by 700,000 bpd in the latter half of the year. This upward trend in inventories is expected to continue into 2026, further signaling weaker demand and contributing to downward price pressure.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr