Oil prices rise, record second weekly gains

Oil drilling rigs

Oil prices rose on Friday, posting gains for the second consecutive week, following easing trade tensions between the US and China. 

Brent crude futures for July delivery leapt 1.36%, or $0.88, to $65.41 per barrel. The US West Texas Intermediate (WTI) crude futures for June delivery also increased 1.41%, or $0.87, to $62.49 per barrel. Both contracts recorded weekly gains of over 2%.

However, oil prices came under pressure at the end of the week, following US President Donald Trump’s announcement that the country is close to reaching a nuclear agreement with Iran. 

Analysts at ING Bank said in a recent note that a nuclear agreement between Washington and Tehran would reduce supply risks, allowing Iran to ramp up oil production, potentially increasing supply by around 400,000 barrels per day, according to Reuters.