Oil prices experienced an upward trend in early trading on Friday, poised to end a consecutive three-week decline driven by high fuel demand and the anticipation that U.S. President Donald Trump’s proposed imposition of retaliatory international tariffs will be delayed until April. This postponement could provide an opportunity to avert a trade conflict.
As of 0300 GMT, Brent crude futures increased by 19 cents, reaching $75.25 per barrel, while U.S. West Texas Intermediate crude futures rose by 12 cents to $71.41 per barrel.
For the week to date, Brent crude has risen by 0.7 percent, and West Texas Intermediate crude has seen a 0.5 percent increase.
Analysts at JP Morgan reported that global oil demand has surged to 103.4 million barrels per day, marking an increase of 1.4 million barrels per day compared to the past year.
“After a temporary slowdown in demand for fuels used in transportation and heating, there has been a marked recovery in the second week of February, indicating a near narrowing of the gap between actual and anticipated demand,” JP Morgan noted.
“Heating fuel consumption is also projected to rise again. Additionally, the elevated gas prices in Europe may catalyze a shift from gas to oil, further boosting demand,” the report added.
On Thursday, President Trump directed trade and economic officials to investigate potential counter-tariffs on nations that impose tariffs on American goods, with recommendations due by April 1.
Meanwhile, the prospects of a ceasefire between Russia and Ukraine have heightened expectations for an increase in global energy supplies, potentially leading to the lifting of sanctions on Moscow.
This week, Trump initiated discussions with U.S. officials regarding the prospect of ending hostilities in Ukraine after both Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky expressed their desires for peace during separate calls with the U.S. President.
In its latest oil market report, the International Energy Agency indicated that Russian oil exports might persist if alternative strategies are devised to counter the most recent U.S. sanctions, as Russian crude production experienced a slight uptick last month.
Russia remains the third-largest oil producer globally, and sanctions imposed on its crude exports following the commencement of its conflict in Ukraine approximately three years ago have contributed significantly to rising oil prices.