Oil prices rise amid hopes for a trade agreement between the United States and the European Union

Oil prices witnessed a noticeable rise on Friday, as WTI crude exceeded the 66-dollar-a-barrel barrier, recording gains for the second consecutive session.

The rise was attributed to improved market sentiment thanks to optimism about reaching trade agreements between the United States and the European Union, easing tensions that were threatening to impose higher tariffs.

Business optimism supports demand

Recent reports indicate that the United States and the European Union are close to concluding an agreement that sets tariffs at 15% on most European goods, after Washington announced a similar agreement with Japan.

This development eased investors fears about the scenario of applying 30% tariffs, which contributed to strengthening the market's confidence in the improvement of global economic growth.

Attention is also turning to possible trade negotiations with other countries such as India, Mexico and Brazil, which strengthens expectations of stimulating oil demand as trade disputes subside.

Supply constraints put pressure on prices

On the supply side, there are signs of tightening supplies, as Russia, one of the world's largest producers, temporarily stopped its oil exports from Black Sea ports.

At the same time, the United States and the European Union are considering additional sanctions targeting the Russian energy sector, which may limit the supply of oil on world markets.

Future expectations

Analysts are unanimous that the current factors of improving global trade prospects and declining supplies may support a new upward wave of oil prices, especially as demand increases as economies recover.

However, prices remain sensitive to any sudden developments in trade policies.