FX.co ★ Oil Rises on Trade Optimism and Supply Constraints

WTI crude futures rose above $66 per barrel on Friday, marking a second consecutive session of gains. This trend was driven by increased optimism regarding US trade agreements, which positively influenced market sentiment. Reports indicate that the US and the EU are close to reaching a deal that would impose a 15% tariff on most EU goods, following a similar agreement with Japan. Furthermore, potential trade agreements with India, Mexico, and Brazil appear to be forthcoming. The anticipation that easing trade tensions could support global economic growth helped alleviate concerns about future oil demand. On the supply front, the global diesel market is experiencing tightening conditions, offering additional support to prices. The EU has intensified restrictions on Russian oil imports, resulting in higher diesel prices. Simultaneously, Russia has temporarily halted oil exports from its Black Sea ports. There are also reports that the US and EU are contemplating further sanctions aimed at Russian energy exports.