Oil prices are heading for a second consecutive weekly gain as easing trade tensions between the US and China support market sentiment, although expectations of increased Iranian supply continue to cap gains.
The international benchmark Brent crude was trading at $63.99 per barrel at 2.43 p.m. local time (1143 GMT) on Friday, marking a rise of around 0.38% from last week's closing price of $63.75.
Similarly, the American benchmark West Texas Intermediate (WTI) stood at $61.35 per barrel, up approximately 1.05% from last Friday's close of $60.71.
Prices started the week on a positive note following reports of significant progress in US-China trade negotiations aimed at easing long-standing tariff and economic tensions.
The market responded positively to progress made over the last weekend in Switzerland, where the US and China agreed to temporarily suspend additional tariffs for a 90-day period.
Under the agreement, effective from May 14, the US will reduce tariffs on Chinese imports from 145% to 30%, while China will cut tariffs on American goods from 125% to 10%.
Analysts say a thaw in relations between the world's two largest economies could alleviate pressure on global trade, boosting oil demand and supporting prices.
However, concerns about oversupply continue to weigh on the market. On Thursday, both benchmarks fell by more than 2% after a selloff triggered by a surprise build in US crude oil inventories and renewed prospects for an Iranian nuclear deal.
The US Energy Information Administration (EIA) reported late Wednesday that the country's commercial crude inventories rose by 3.5 million barrels last week, signaling weaker demand in the world's largest oil consumer.
Meanwhile, the US has reportedly proposed a new nuclear deal to Iran during the fourth round of negotiations.
According to press reports citing American and Iranian officials, the Trump administration formally presented Iran with a written nuclear proposal - a significant development in the ongoing diplomatic efforts. US envoy Steve Witkoff delivered the document during Sunday's talks in Oman, Axios reported.
Peace efforts between Russia and Ukraine also remain in market focus. Trilateral meetings are taking place in Istanbul, involving T眉rkiye, the US, and Ukraine, as well as T眉rkiye, Russia, and Ukraine.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr