Trump Initiatives Spur Daily Oil Gains, But Not Enough To Avoid Weekly Loss

Crude has shed about 14 percent so far this year this year: File Image/Pixabay

A minuscule rise in oil prices on Friday wasn't enough to head off a weekly loss for the commodity, with analytical concerns ranging from U.S. president Donald Trump's tariffs to his latest round of nuclear talks between Washington and Tehran.

Brent settled up 34 cents at $64.78 per barrel, while West Texas Intermediate settled up 33 cents at $61.53; for the week, both benchmarks were on track to lose more than 1 percent following two weeks of gains.

According to Abbas Araghchi, foreign minister for Iran, the U.S. and Iran on Friday concluded a fifth round of nuclear talks in Rome that yielded "some but not conclusive progress"; he added that a deal was possible that would prevent Tehran from developing nuclear weapons - but not continuing uranium enrichment.

Bullish sentiment was stoked by a report from CNN that U.S. intelligence suggested Israel was making preparations to strike Iranian nuclear facilities; however, Bloomberg noted that, "Still, the outlook remains overall bearish.

"Crude has shed about 14 percent this year, hitting the lowest since 2021 last month, as OPEC+ loosened supply curbs at a faster-than-expected pace, just as the U.S.-led tariff war posed headwinds for demand."

Jens Naervig Pedersen, a strategist at Danske Bank, agreed: "While another OPEC+ output hike is the main concern, progress in Iran nuclear talks, and the potential sanctions relief, and lack of progress in trade talks add to market woes."

In other oil news on Friday, Valdis Dombrovskis, economic director at the European Commission, said it would be appropriate to lower the cap on Russian oil from $60 to $50 per barrel, on the grounds the current cap combined with lower oil prices simply isn't hurting Moscow as intended for its war against Ukraine.

Also on Friday, Erlan Akkenzhenov, energy minister for Kazakhstan, told media his country will likely exceed the production total of 96.2 million tons of crude oil and condensate that earlier this year he claimed would be the output limit and, at about 2 million barrels per day (bpd), would in itself be 9.7 percent higher compared to 2024.

Kazakhstan's overproduction has been a significant source of trouble for the Organization of the Petroleum Exporting Countries (OPEC) producers, many of whom have been abiding by  their quotas, especially de facto leader Saudi Arabia.