Oil markets were closed on Good Friday, a holiday observed before Easter Sunday, but the benchmarks saw a notable uptick in trading on Thursday, ahead of the market closure.
Oil Prices Surge Ahead of Holiday Closure
Brent Crude (the international oil benchmark) saw a 2.5% increase, rising to $66.96 per barrel from the previous day’s close of $65.34.
West Texas Intermediate (WTI), the US benchmark, jumped 2.8%, reaching $63.71 per barrel, up from $61.96 at the close on Wednesday.
Despite the closure for the holiday, oil prices experienced solid gains as both benchmarks rebounded from last week’s lows—the weakest in four years. These gains came amid optimism surrounding ongoing trade negotiations, particularly between the United States and key global trading partners.
Market Dynamics and Optimism Around Trade Talks
The rise in crude prices was fueled by renewed optimism surrounding global trade talks. US President Donald Trump continued to express hope that a trade agreement with the European Union could be finalized before the 90-day deadline to halt reciprocal tariff measures. His meetings with Italian Prime Minister Giorgia Meloni at the White House also contributed to the market’s positive outlook.
Trump also alluded to potential breakthroughs in US-China trade relations, revealing that intermediaries acting on behalf of Chinese President Xi Jinping had initiated discussions, though he stopped short of confirming whether the two leaders had communicated directly.
Lingering Concerns Over Tariffs and Inflation
Despite the optimism, concerns remain over the tariff standoff between Washington and its key trading partners. Federal Reserve Chair Jerome Powell cautioned earlier this week that the announced tariff hikes could significantly stoke inflationary pressures, leading to higher prices and slower economic growth.
These concerns have been a key factor in limiting upward momentum in oil prices. There is growing expectation that weaker oil demand could emerge from the US, the world’s largest oil consumer, due to the potential for slower economic activity caused by higher tariffs.
Looking Ahead
As the markets closed for Good Friday, the focus will now turn to whether the optimism surrounding trade talks translates into lasting market confidence. Despite the volatility and concerns over tariffs, oil prices have shown resilience in the face of these challenges, and further developments in global trade negotiations could continue to shape market sentiment moving forward.
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