Azernews.Az

By Trend

Oil prices rose on Friday despite the start of U.S. President Donald Trump’s tariff hike on $200 billion of Chinese goods, stoking the trade dispute between the world’s two biggest economies, reports Trend citing to Reuters.

China on Friday said it “deeply regrets” the U.S. move, adding that it would take necessary countermeasures, without elaborating.

Prices were supported by tighter supply amid ongoing production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and U.S. sanctions on Iran and Venezuela.

The Brent crude oil benchmark was at $70.73 a barrel at 0643 GMT, up 34 cents, or 0.5%, from its last close, after rising as far as $71.23 a barrel.

U.S. West Texas Intermediate (WTI) crude futures were up 39 cents at $62.09 per barrel, having earlier hit $62.49 a barrel.

Brent is down slightly on the week, on course for its second weekly loss, while U.S. crude is set for a weekly gain of 0.2% in what would be its first gain in three weeks.

Growing trade tensions between the world’s two largest oil consumers could impact oil demand. The two countries combined to make up 34% of global oil consumption in the first quarter of 2019, according to data from the International Energy Agency.

“(Still) crude prices are likely to be supported on geopolitical risks,” said Edward Moya, senior market analyst at futures brokerage OANDA.