Oil prices rose early Friday, positioning themselves to break a three-week losing streak, driven by an uptick in fuel demand and optimism that U.S. President Donald Trump’s proposed reciprocal tariffs on global imports will be delayed until April, offering more time for trade tensions to cool.
By 0300 GMT, Brent crude futures had gained 19 cents, reaching $75.25 per barrel, while U.S. West Texas Intermediate (WTI) crude rose by 12 cents to $71.41. For the week, Brent showed a modest increase of 0.7%, with WTI up 0.5%.
According to JPMorgan analysts, global oil demand has surged to 103.4 million barrels per day, marking a year-on-year increase of 1.4 million barrels. They highlighted that after an initially slow start, demand for mobility and heating fuels picked up significantly in the second week of February, signaling that the gap between actual and projected consumption would soon close.
“Heating fuel consumption is expected to rise again, and with European gas prices soaring, a shift from gas to oil could further increase demand,” JPMorgan added.
On the trade front, President Trump on Thursday instructed U.S. commerce and economics officials to explore the possibility of reciprocal tariffs against countries that have imposed tariffs on U.S. goods, with recommendations due by April 1. However, the potential for a resolution to the ongoing Russia-Ukraine conflict has raised concerns that an end to sanctions on Russia could lead to increased global oil supplies, which may counterbalance price movements.
Amid these geopolitical developments, President Trump also initiated discussions on ending the war in Ukraine, following peace overtures from both Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky in recent phone conversations.
The International Energy Agency (IEA) noted that Russia’s oil exports could remain stable if alternative routes to circumvent U.S. sanctions are found. Russian crude production saw a slight increase last month, despite the sanctions that have been in place since Russia’s invasion of Ukraine nearly three years ago. As the world’s third-largest oil producer, Russia’s exports remain a key factor in global oil price dynamics, with the sanctions continuing to have a significant impact on the market.
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