West Texas Intermediate (WTI) crude oil prices traded in a narrow range around the mid-$62 per barrel mark during Friday’s Asian session, poised to post their first weekly gain in three weeks.
Renewed hopes for a US-China trade dialogue boost expectations for stronger fuel demand from the world’s two largest economies, providing upward momentum for oil. On Thursday, US President Donald Trump and Chinese President Xi Jinping agreed that officials will soon meet to continue negotiations aimed at resolving the ongoing trade dispute.
Supply concerns also support prices, with Canadian crude output disrupted by wildfires adding to the supply-tightening narrative. Meanwhile, geopolitical tensions persist, driven by the prolonged Russia-Ukraine conflict and unrest in the Middle East, further underpinning the market.
Additionally, a softer US Dollar—often inversely correlated with dollar-denominated commodities like crude—offers further price support. However, traders remain cautious and are holding back from making aggressive moves ahead of Friday’s pivotal US Nonfarm Payrolls (NFP) report. The NFP release is widely anticipated to shape expectations around the Federal Reserve’s future interest rate cuts and influence demand for the dollar, ultimately affecting crude oil prices.
