Oil prices edged higher on Friday following US President Donald Trump’s announcement that he will make a major statement on Russia next week, raising concerns over potential new sanctions on the key oil-producing country.
However, gains were limited by investor caution over the possible economic impact of rising tariffs.
International benchmark Brent crude rose by around 0.16%, trading at $68.40 per barrel at 10.28 a.m. local time (0728 GMT), up from $68.29 at the previous session's close.
Similarly, US benchmark West Texas Intermediate (WTI) increased by 0.15%, settling at $65.96 per barrel, compared to $65.86 in the prior session.
Speaking to NBC News on Thursday, Trump said he was "disappointed in Russia" over the war in Ukraine and added, "I think I'll have a major statement to make on Russia on Monday," without providing further details. The prospect of additional sanctions left the market jittery.
Meanwhile, expectations for a potential easing of US monetary policy helped support market sentiment.
Federal Reserve Governor Christopher Waller said monetary policy remains tight and suggested a rate cut could be on the table this month, while noting he is in the minority and emphasizing the decision is not politically driven.
San Francisco Fed President Mary Daly also said the time to begin lowering interest rates is approaching and that two rate cuts may be appropriate this year.
St. Louis Fed President Alberto Musalem highlighted upside risks to inflation but added it is too early to assess the lasting effects of tariffs on prices.
Signals from Fed officials strengthened the likelihood that the central bank may begin cutting rates in September if not this month, increasing investor risk appetite and lending some support to oil prices.
Investors also remained cautious amid growing uncertainty over Trump's tariff policy. The U.S. President announced plans to impose blanket tariffs of 15% to 20% on most trading partners.
Trump later also announced that his administration will impose a 35% tariff on goods imported from Canada starting August 1.
Tariffs typically slow global growth by disrupting trade and increasing costs, which in turn dampen industrial activity and travel, both key drivers of oil demand.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr