Shafaq News/ Oil prices rebounded onFriday to recover some of their more than 1% losses in the previous session,partly due to diminishing prospects of a quick end to the Ukraine war thatcould bring back more Russian energy supplies.
Brent crude futures rose 46 cents,or 0.7%, to $70.34 a barrel by 0406 GMT after settling 1.5% lower in theprevious session. U.S. West Texas Intermediate crude was at $67.03 a barrel, up48 cents, or 0.7%, after closing down 1.7% on Thursday.
Russian President Vladimir Putinsaid on Thursday that Moscow supported a U.S. proposal for a ceasefire inUkraine in principle, but sought a number of clarifications and conditions thatappeared to rule out a quick end to the fighting.
"Russia's tepid support of a30-day cease-fire proposal with Ukraine has reduced confidence around aceasefire in the short term," IG market analyst Tony Sycamore said.
"The feeling is that U.S. won'tlift sanctions until they agree a ceasefire."
However, the global trade war thathas roiled financial markets and raised recession fears is escalating with U.S.President Donald Trump on Thursday threatening to slap a 200% tariff on wine,cognac and other alcohol imports from Europe.
The International Energy Agencywarned on Thursday that global oil supply could exceed demand by around 600,000barrels per day this year, due to growth led by the United States and weakerthan expected global demand.
"The macroeconomic conditionsthat underpin our oil demand projections deteriorated over the past month astrade tensions escalated between the U.S. and several other countries,"the IEA said, prompting it to revise down its demand growth estimates for thefourth quarter of 2024 and the first quarter of 2025.
The Trump-driven trade war woes anddemand worries dented oil prices on the previous day, though the possibility ofless Russian oil in the global markets in the near term provided some cushionduring Friday's trade.
"Most price projections were tothe downside in the short term, but geopolitical tension could still causesupply disruptions," ANZ analysts said in a note to clients.
(REUTERS)