Oli prices rose on Friday and posted a second consecutive weekly gain, buoyed by hopes of trade tension between the US and China continuing to thaw.
Brent, the benchmark for two thirds of the world's crude, closed up 1.36 per cent to $65.41 a barrel. West Texas Intermediate, the gauge that tracks US crude, added 1.4 per cent to $62.49 per barrel.
The benchmarks posted a weekly rise of 1 per cent and 2.4 per cent, respectively.
Year-to-date, the benchmarks are down by about 14 per cent, weighed down particularly by the sweeping tariffs announced by the US last month.
Crude fell by more than 3 per cent on Thursday on the back of expectations of a possible nuclear deal between the US and Iran that could result in Tehran boosting oil supply to the market if sanctions are eased.
The market has been "awaiting news on a potential US-Iran nuclear deal and developments on US tariff negotiations with trading partners around the world, with a particular focus on the talks with China that began this week", analysts at Vanda Insights said.
The US and China, the two main protagonists in the tariff war, agreed to a 90-day trade truce after a much-anticipated meeting in Geneva last weekend.
The world's two biggest economies and users of crude imposed significant drops to the tariffs they had imposed on each other for a period of 90 days, "recognising the importance of their bilateral economic and trade relationship to both countries and the global economy", a joint statement released by the White House read.
Oil prices, however, continue to be weighed down by the possibility of Opec+ increasing its output and a nuclear deal between the US and Iran.
US President Donald Trump, who wrapped up his Middle East tour in Abu Dhabi, had earlier said Washington was close to reaching a deal with Tehran.
Iran is Opec’s third-largest oil producer, with an output of 3.3 million barrels per day as of April, according to the latest monthly oil market report by the oil producers' group.
If a deal is reached between the two countries, it could lead to a boost in supply from Iran, based on the prospect of sanctions relief.
Meanwhile, Opec plans to boost output in anticipation of higher demand are also weighing on oil prices.
The alliance of producers, including Saudi Arabia and Russia, this month agreed to increase production by 411,000 barrels per day for a second month in a row in June after deciding to add the same volume to the market in May.
On Thursday, the International Energy Agency boosted its global supply growth forecast for 2025 by 380,000 bpd, while anticipating a surplus for 2026.
Investors are awaiting clues from the US Federal Reserve on potential interest rate cuts, which are expected to boost the American economy, its consumers and energy demand.
