Oil prices rose in Asian trade on Friday amid some signs of resilient U.S. demand, although they were nursing steep losses this week as concerns over Middle Eastern supply disruptions cleared.
Brent oil futures for August rose 0.5% to $68.07 a barrel, while West Texas Intermediate crude futures rose 0.5% to $65.57 a barrel by 21:10 ET (01:10 GMT).
Prices took some support from U.S. inventory data showing a sharp drawdown in crude stockpiles, while promises of more stimulus in top importer China also helped spur some optimism over demand.
A softer dollar– which slid to more-than three-year lows on Thursday– also aided oil prices, amid growing speculation over whether the Federal Reserve will cut interest rates soon. PCE price index data due later on Friday is set to provide more cues.
Oil down over 12% for the week as supply concerns clear
Brent and WTI futures were trading down over 12% each this week, having clocked sharp losses after U.S. President Donald Trump announced a ceasefire between Israel and Iran.
The ceasefire, while off to a tenuous start earlier this week, appeared to be holding steadily as of Friday morning.
Trump signaled that Iran could continue selling oil to China– a bearish signal for oil markets– while also touting upcoming nuclear talks with Tehran next week.
Iran also did not block the Strait of Hormuz as initially feared, keeping oil shipments flowing into Asia and Europe.
