Oil Prices Record Weekly Gains Amid Trade Optimism

According to a report by the Al-Attiyah Foundation, oil prices recorded gains last week, marking their first weekly increase since mid-April. The report highlighted that prices rose by nearly 2% on Friday, supported by market optimism following a trade agreement between the United States and the United Kingdom, and ahead of anticipated talks between Washington and Beijing.

Brent crude futures rose by $1.07, or 1.7%, to settle at $63.91 per barrel, while West Texas Intermediate (WTI) crude increased by $1.11, or 1.9%, closing at $61.02. Over the week, both benchmarks posted gains exceeding 4%.

In related remarks, U.S. President Donald Trump stated that China “should open its markets to American goods,” suggesting that an 80% tariff on Chinese goods would be “appropriate.” This came one day after he announced a trade deal with the UK to reduce tariffs on car and steel exports as part of a broader economic agreement.

Despite the recent price gains, the report cautioned that the outlook for oil remains uncertain, largely hinging on the trajectory of the U.S. economy, trade policy decisions, and the enforcement of sanctions on both Iran and Russia.

Gas Prices: Modest Rise in Asia, Pressure Remains from Weak Chinese Demand

On the gas front, the Al-Attiyah Foundation noted a slight increase in liquefied natural gas (LNG) prices in Asian markets, driven by gains in Europe after the European Union announced plans to gradually phase out Russian gas imports.

The average price for June delivery of LNG to Northeast Asia rose to $11.50 per million British thermal units (MMBtu), up from $11.00 the previous week. However, the Chinese market continues to show relative weakness due to increased domestic production and stable pipeline gas imports.

In Europe, prices were supported by the European Commission’s announcement of upcoming legislation aimed at ending all gas and LNG imports from Russia by the end of 2027. The legislation is also expected to include an immediate ban on spot market imports by the end of 2025.