Oil prices increased on Friday as optimism grew over the potential for new US trade deals ahead of President Donald Trump's self-imposed Aug. 1 negotiation deadline.
The international benchmark Brent crude rose around 0.12% to $68.66 per barrel at 11 a.m. local time (0800 GMT), up from $68.58 at the previous session's close.
The US benchmark West Texas Intermediate (WTI) crude increased by 0.15% to $66.07 per barrel, compared to $65.97 in the prior session.
The Financial Times reported on Wednesday that the US and the European Union (EU) were moving toward a trade deal that would reduce tariffs on European goods to 15%, mirroring a recent agreement with Japan.
European Commission spokesperson Olof Gill also said during a news briefing on Thursday that intensive political and technical-level contacts were ongoing between the EU and the US. "We want to get an agreement over the line as quickly as possible," Gill said.
Indian Commerce Minister Piyush Goyal also expressed optimism about a potential trade deal with the US.
These follow Trump's announcement of a trade agreement with Japan that lowers tariffs from a proposed 25% to 15% on Japanese imports.
Easing trade tensions are seen as supportive of global economic activity, which in turn would bolster oil demand.
Meanwhile, TrumpWs visit to the Federal Reserve and his remarks about Chair Jerome Powell have heightened concerns that tensions between the two could escalate.
Investors largely expect the Fed to keep interest rates unchanged at its upcoming meeting. However, expectations remain strong that the bank will cut its policy rate by a total of 50 basis points by the end of the year.
Lower interest rates typically weaken the US dollar, making oil cheaper for holders of other currencies and boosting global demand.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr