West Texas Intermediate (WTI), the U.S. crude oil benchmark, climbed to a two-week high of around $63.50 during Friday’s Asian session. The upward momentum is driven by renewed optimism over a potential trade agreement between the United States and the European Union, coupled with fresh U.S. sanctions aimed at curbing Iranian oil exports. Trading volume is expected to be subdued due to the Good Friday holiday.
Trade Talks Boost Market Sentiment
Hopes for easing transatlantic trade tensions were buoyed after a meeting between U.S. President Donald Trump and Italian Prime Minister Giorgia Meloni in Washington. The leaders expressed optimism about resolving long-standing trade disputes that have strained U.S.-EU relations. “We’re going to have very little problem making a deal with Europe or anybody else, because we have something that everybody wants,” Trump stated, signaling confidence in forthcoming negotiations.
Sanctions on Iran Fuel Supply Concerns
Meanwhile, geopolitical factors also played a role in supporting crude prices. The U.S. imposed new sanctions targeting Iran’s oil sector, escalating its “maximum pressure” policy to restrict the country’s ability to fund destabilizing activities through oil revenues. The sanctions are aimed not only at Iran but also at entities attempting to bypass the restrictions.
“The U.S. continues to aggressively sanction Iran and impose sanctions against buyers of Iranian oil. OPEC+ has also provided updates and reassurance to the market, stating that they remain in control with flexibility to cut production if needed,” analysts at energy consultancy Gelber and Associates said in a note.
U.S. Crude Stockpile Build Slower Than Expected
On the supply side, the Energy Information Administration (EIA) reported that U.S. crude inventories rose by 515,000 barrels in the week ending April 11, a figure that came in below both the previous week’s 2.553 million-barrel increase and market expectations of a 400,000-barrel rise. The slower inventory build suggests tightening supplies, adding further upward pressure on prices.
As geopolitical risks linger and trade developments unfold, WTI crude prices remain sensitive to both diplomatic progress and disruptions in global oil supply.
