Oil prices held steady on Friday, heading for a second consecutive weekly gain due to easing U.S.-China trade tensions though a potential return of Iranian supply limited price gains.
Brent crude futures dipped 1 cent to $64.52 a barrel by 0326 GMT. U.S. West Texas Intermediate crude futures added 2 cents to $61.64. Both contracts fell more than 2% in the previous session following a selloff due to the rising prospect of an Iranian nuclear deal.
President Donald Trump said the U.S. was nearing a nuclear deal with Iran, with Tehran “sort of” agreeing to its terms.
However, a source familiar with the talks said there were still issues to resolve. ING analysts wrote in a note that a nuclear deal lifting sanctions would ease supply risk, allowing Iran to increase oil output and find more willing buyers for its oil.
That could result in additional supply of around 400,000 barrels per day (bpd), they said. Despite the potential supply pressure, both Brent and WTI were up 1% so far this week, after a surge earlier in the week.
