Crude Oil Prices Surge After Recent Volatility

Crude oil futures experienced a notable uptick in trading on Friday, recovering from the significant decline observed over the preceding sessions. Following a steep drop of $1.53, or 2.4%, which brought prices down to $61.62 per barrel on Thursday, futures for June delivery rebounded by $0.87, or 1.4%, reaching $62.49 per barrel.

This increase is part of a broader trend, as the price of crude oil has risen by 2.4% throughout the week. This weekly gain can largely be attributed to renewed optimism regarding U.S. trade policies. Recent announcements regarding a U.S.-China trade agreement temporarily reducing high tariffs on each country's goods have contributed to a more favorable market outlook.

The positive sentiment surrounding trade negotiations has also helped mitigate anxieties surrounding supply issues. There are indications that the U.S. may be nearing a nuclear deal with Iran, which is a significant factor in the global oil market. A potential easing of sanctions on Iran could lead to increased oil production, offering more supply to global markets. However, reports indicate that some unresolved issues still need to be addressed before a conclusive agreement can be finalized.

In its recent monthly report, the International Energy Agency (IEA) projected that global oil demand growth is expected to slow for the remainder of 2025, following a robust first quarter. This anticipated slowdown is largely due to various economic challenges that may impact consumption patterns moving forward.

Overall, the rise in crude oil prices signals a shifting landscape, influenced by trade agreements and potential changes in supply dynamics. As market conditions continue to evolve, stakeholders remain vigilant in tracking developments that could further affect price movements.