Crude Oil Holds Above $69 as US Trade Deals Progress, Russia Eyes Gasoline Export Cuts

Oil prices stayed mostly stable in Asian markets on Friday following a strong rally the day before. The gains came as traders reacted to signs of easing global trade tensions and expectations of reduced fuel exports from Russia.

• Brent crude (Sept delivery): Up 0.2% to $69.29/barrel
• WTI crude: Up 0.2% to $66.13/barrel
• Thursday's jump: Over 1% due to a drop in US crude inventories

More US Trade Deals in Focus

Market optimism grew after:

• A US-Japan trade deal was finalised, cutting tariffs on Japanese imports to 15% from 25%.
• A US-EU deal is reportedly close, replacing the upcoming 30% tariff with a 15% one.
• India's Commerce Minister expressed confidence in reaching a trade agreement with the US to avoid a 26% tariff.

Russia May Tighten Gasoline Export Ban

According to Reuters, Russia may soon expand its gasoline export restrictions, possibly including fuel producers, in an attempt to control rising domestic fuel prices.

• So far, only certain resellers faced restrictions.
• This anticipated move pushed oil prices 1% higher on Thursday.

Venezuela Oil Exports Get Green Light

The US is expected to allow limited oil operations in Venezuela, starting with Chevron.

• In February, energy licenses were revoked, but this reversal may allow exports to rise by over 200,000 barrels/day.
• This could help US refiners, who are facing a tight supply of heavier crude oil.

Read More: Reliance Industries Russian Crude Oil Strategy Under EU Scrutiny Amid Sanctions!

What This Means for Oil Prices

Oil markets are being influenced by a mix of:

• Reduced supply from Russia
• Potential for increased exports from Venezuela
• Improved trade relations globally

These factors together could stabilise or even push oil prices higher, especially if global economic activity picks up.

Conclusion

Oil prices are holding their ground after strong gains, with global trade deals and tighter fuel supply expectations boosting sentiment. As negotiations continue and export limits evolve, investors will watch closely for further movement in crude markets.

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