Oil prices edged lower on Friday but ended the week with their first gain in three weeks. Brent crude dipped 28 cents, or 0.4%, to $65.06 a barrel, retreating from a 13-month high, and U.S. West Texas Intermediate (WTI) fell 36 cents, or 0.6%, to $63.01. But both benchmarks rose on the week, with Brent up 1.8% and WTI rising 3.7%.
The increase followed reports of resumed trade talks between the United States and China and signs that the two powers are willing to work together. Officials on both sides praised the talks, which helped buoy market sentiment and sparked optimism that global demand could rebound.
Yet new data showed an unexpected rise in U.S. gasoline and diesel stockpiles, indicating soft domestic demand. That raised concerns that any recovery in consumption could take longer to materialize.
The world's top exporter, Saudi Arabia, meanwhile, cut its July selling prices for Asia to near two-month lows, indicating it wants to keep a lid on the market. The price shift came after OPEC+ announced that it would increase its oil production by 411,000 barrels a day starting in July. The action is part of a broader effort to manage supply and discipline among the group.
At the same time, worries about tighter global supply persist. Sanctions on Venezuela and increasing tension in the Middle East could disrupt exports by major producers. Fires in Alberta, Canada, have also knocked hundreds of thousands of barrels a day offline, adding to the squeeze on supplies.
The market was further supported as a weaker U.S. dollar made crude cheaper for buyers using other currencies. Traders are now looking to more upcoming economic reports, including jobs numbers and inflation measures that could affect monetary policy and energy demand.
