Oil prices edged up in Asian trade on Friday but were on track to fall for a third straight week, weighed down by US President Donald Trump's renewed trade war with China and threats of higher tariffs on other countries.
Brent crude futures rose 32 cents to $74.61 a barrel, but are set to fall 2.8% this week. Meanwhile, US West Texas Intermediate (WTI) crude rose 24 cents to $70.85 a barrel, down about 2.3% on a weekly basis.
IG market strategist Yeap Jun Rong said the oil market saw some stability return this morning following a volatile session overnight, as traders reacted to news of US sanctions on Iranian crude exports to China.
The US Treasury said on Thursday it was imposing new sanctions on several individuals and tankers that help ship millions of barrels of Iranian crude annually to China in a further step to increase pressure on Tehran.
He added that today's gains remained limited reflecting ongoing concerns about supply and demand issues.
Potential output increases from OPEC+ and the US and tariff risks will be the main drivers of global oil demand.
In addition, Trump has announced a 10% tariff on Chinese imports as part of a broader plan to improve the US trade balance and has postponed his plans for Mexico and Canada.
Oil prices closed lower on Thursday after Trump reiterated his pledge to increase US oil production, confusing traders a day after the country reported a much larger-than-expected surge in crude inventories.
The benchmark was also under pressure from a sharp rise in US crude inventories last week.
