Oil gains as China opens door for trade talks with US
Oil prices climbed on Friday after China said it was open for talks with the United States on tariffs, raising hopes of a de-escalation in a bitter trade war between the world's two largest economies.
Brent crude futures rose 49 cents, or 0.8%, to $62.62 a barrel by 0446 GMT, while U.S. West Texas Intermediate crude futures added 50 cents, or 0.8%, to $59.74 a barrel.
China's Commerce Ministry said on Friday that Beijing is "evaluating" a proposal from Washington to hold talks aimed at addressing U.S. President Donald Trump's sweeping tariffs, signalling a possible easing of the trade tensions that have rattled global markets.
Concerns that the broader trade war could push the global economy into a recession and crimp oil demand, just as the OPEC+ group is preparing to raise output, have weighed heavily on oil prices in recent weeks.
"If Washington runs with it, as I expect it to, this could be a game-changer in the gloom-and-doom mood that has enveloped markets for weeks," said Vandana Hari, founder of oil market analysis provider Vanda Insights.
"No one expects a smooth sailing for sure, but it's an encouraging breakthrough in the impasse that has been weighing on markets," Hari said.
Oil prices were also underpinned by a threat from Trump to impose secondary sanctions on buyers of Iranian oil.
Trump's comments followed a postponement of U.S. talks with Iran over its nuclear program. He had previously restored a "maximum pressure" campaign against Iran, which included efforts to drive the country's oil exports to zero, to help prevent Tehran from developing a nuclear weapon.
Oil prices had gained late in Thursday's session to settle nearly 2% higher on Trump's remarks, erasing some of the losses recorded earlier in the week on expectations of more OPEC+ supply coming to the market.
Reuters on Wednesday reported that Saudi Arabia, de facto leader of OPEC+, has briefed allies and industry experts that it is unwilling to prop up oil prices with further supply cuts.
Several OPEC+ members are set to suggest the group accelerates output hikes in June for a second consecutive month, Reuters earlier reported. Eight OPEC+ countries will meet on May 5 to decide a June output plan.
"With non-OPEC+ supply rising robustly and global demand growth facing structural decline, we see no natural re-entry point for these barrels and, ultimately, the group will likely have to endure some price pain no matter when it unwinds its cuts," Fitch's BMI research unit said in a note.
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