Oil Prices Rise Amid Optimism and Trade Fears

Oil prices rebounded in Asian trading on Friday, poised to snap a three-week losing streak.

Rising Demand and Delayed Tariffs

Fuel demand growth and expectations that US reciprocal tariffs may not come into effect until April have lifted sentiment. This provides additional time for negotiations to avert a trade war.

Brent and WTI Up

Brent futures gained 23 cents, or 0.3%, to $75.25 a barrel, while US West Texas Intermediate (WTI) crude rose 16 cents, or 0.2%, to $71.45.

Potential Russian Supply Concerns

Traders remain cautious over potential peace talks between Russia and Ukraine, which could lead to eased sanctions and a surge in global energy supplies.

IEA: Russian Exports Sustainable

However, the International Energy Agency (IEA) notes that Russian crude production increased last month, suggesting exports could be maintained despite sanctions.

Surging Global Demand

Global oil demand has spiked to 103.4 million barrels per day, a 1.4 million bpd increase year-over-year, driven by rising mobility and heating fuel consumption.

Shift from Gas to Oil

Soaring gas prices in Europe could also boost oil demand, as consumers switch from gas to oil for heating.

Conclusion

Oil prices are rising on optimism over delayed tariffs and strong demand growth, but concerns about potential Russian supply and trade risks linger.