LONDON :Oil prices were steady on Friday, as trade talk optimism supported the outlook for both the global economy and oil demand, balancing news of the potential for more oil supply from Venezuela.
Brent crude futures were up 28 cents, or 0.4 per cent, at $69.46 a barrel at 1311 GMT. U.S. West Texas Intermediate crude futures were up 27 cents, or 0.41 per cent, at $66.30.
Brent was heading for a 0.3 per cent weekly gain at that level, while WTI was down around 1.5 per cent from where it closed last week.
Brent prices have been largely range-bound between $67 and $70 a barrel for the last month, since the sharp drop in prices in late June after de-escalation in the Iran-Israel conflict.
Oil prices are “caught in largely a holding pattern brought about by inconclusive specific oil drivers”, PVM analyst John Evans said.
Oil, along with stock markets, gained support from the prospect of more deals between the United States and trading partners ahead of an August 1 deadline for new tariffs on goods from an array of countries.
After the U.S. and Japan secured a trade deal this week, two European diplomats said the European Union was moving towards a deal involving a baseline U.S. tariff of 15 per cent on EU imports, plus possible exemptions.
“Trade talk optimism appears to be offsetting expectations for stronger Venezuelan supply,” ING analysts wrote in a client note on Friday.
The United States is preparing to allow partners of Venezuela’s state-run PDVSA, starting with U.S. oil major Chevron, to operate with limitations in the sanctioned nation, sources said on Thursday.
Venezuelan oil exports could consequently increase by a little more than 200,000 barrels per day, which would be welcome news for U.S. refiners, as it would ease tightness in the heavier crude market, ING analysts wrote.
Prices were also supported this week by disruptions to Black Sea oil exports and Azeri BTC crude loading from the Turkish port of Ceyhan.
“Delays in deliveries from the Russian terminal on the Black Sea and the Turkish port on the Mediterranean are likely to have contributed to the Brent oil price rising back towards $70. Now that exports are back to normal, support for prices is likely to ease,” Commerzbank analyst Carsten Fritsch said.
A meeting of the Joint Ministerial Monitoring Committee, which includes top ministers from the Organization of the Petroleum Exporting Countries and allies led by Russia, is scheduled for 1200 GMT on Monday.
Four OPEC+ sources told Reuters the meeting was unlikely to alter the group’s existing policy, which calls for eight members to raise output by 548,000 barrels per day in August.
