NEW YORK – Oil prices settled more than 3 percent higher on Thursday, supported by hopes for a trade deal between the United States and the European Union and new US sanctions to curb Iranian oil exports, which continued to elevate supply concerns.
Brent crude futures settled $2.11, or 3.2 percent, higher to $67.96 a barrel, and US West Texas Intermediate crude gained $2.21, or 3.54 percent, at $64.68 a barrel.
For the week, both Brent and WTI gained about 5 percent, their first weekly gain in three weeks. Thursday is the last settlement day of the week ahead of the Easter holidays and trade volumes were thin.
US President Donald Trump and Italian Prime Minister Giorgia Meloni met in Washington and expressed optimism about resolving trade tensions that have strained US-European relations.
“We’re going to have very little problem making a deal with Europe or anybody else, because we have something that everybody wants,” Trump said.
Reaching a trade deal with the EU could potentially limit oil demand destruction from Trump’s tariffs, said Bob Yawger, director of energy futures at Mizuho.
Sanctions issued by Trump’s administration on Wednesday, including against a China-based “teapot” oil refinery, ramp up pressure on Tehran amid talks on the country’s nuclear programme. “Teapot” is an industry term for small, independent and simple oil refiners.
