Oil prices post weekly gains despite last-minute dip on renewed trade tensions
Oil prices fell on Friday on renewed concerns that the US-China trade war could escalate, but still posted strong weekly gains.
Brent ended the week with its biggest increase since January following the attack on Saudi Arabia’s oil facilities last weekend.
Read more: Oil prices plunge as Saudi production could return sooner than expected
On Friday, Brent fell to $64.28 per barrel, while WTI crude also fell marginally to $58.09 per barrel.
It came as prices pared gains, along with the stock market, following a decision from Chinese agriculture officials to cancel next week’s trip to US farm states, Montana and Nebraska.
The cancellation occurred in the wake of trade talks with Donald Trump in Washington, who issued a statement declaring he wanted to complete a trade deal not just an agricultural agreement.
Despite this, Brent ended the week 6.7 per cent up, while WTI also rose by 5.9 per cent.
Prices had jumped by almost 20 per cent on Monday in the wake of the attack on Saudi Arabia’s oil production last weekend.
It cut Saudi’s production in half, and cut global supplies by 5 per cent, prompting the spike.
Read more: US oil firm Vaalco looking for multi-million pound acquisition on London listing
Most of those gains have been pared though, on assurances Saudi would restore lost production by the end of this month.
It has maintained a risk premium, however, due to the geopolitical tensions in the area with Saudi blaming Iran for the attack.