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Oil rises 2% as investors assess weaker market outlook
Oil prices rose as investors assessed a weaker market outlook for this year from the International Energy Agency, with focus also on US tariffs and the possibility of further sanctions against Russia.
Brent crude futures rose $1.35, or 2%, to $69.99 a barrel. US West Texas Intermediate (WTI) crude rose $1.49, or 2.2%, to $68.06 a barrel.
Brent is on track for a 2.5% gain for the week, while WTI is on track for a 1.6% gain from last week's close.
The International Energy Agency said on Friday that supplies in the global oil market may be tighter than they appear, as refineries ramp up refining activity to meet summer travel and electricity demand.
In its 2025 World Oil Outlook released Thursday, the Organization of the Petroleum Exporting Countries (OPEC) lowered its estimates for global oil demand for the period from 2026 to 2029, citing slowing consumption in China.
OPEC forecasts global demand to average 106.3 million barrels per day in 2026, compared to 108 million barrels per day in its previous estimate for last year.
Tariffs
US President Donald Trump announced on Thursday the imposition of a 35% tariff on imports from Canada, effective August 1. He also indicated that his country intends to apply a uniform tariff of 15% or 20% to most other trading partners.
In a related development, diplomatic sources in the European Union reported that the European Commission is considering a proposal to impose a floating price cap on Russian oil exports as part of a new package of sanctions, after the current cap became ineffective due to the decline in oil prices in the markets.
