HG MARKETS:

Oil prices declined modestly on Friday but remained on track to post their first weekly gain in three weeks, buoyed by renewed trade negotiations between the United States and China. The dialogue between the world’s two largest economies has reignited hopes for global economic growth and stronger energy demand.

Brent crude futures slipped by 28 cents, or 0.4%, to $65.06 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 36 cents, or 0.6%, to $63.01. Despite the daily losses, both benchmarks are poised to close the week higher after two consecutive weeks of decline. Brent is up 1.8% for the week, and WTI has gained approximately 3.7%.

According to China’s official Xinhua news agency, the trade discussions between President Xi Jinping and U.S. President Donald Trump took place at Washington’s request. President Trump characterized the call as having reached a “very positive conclusion,” stating that the United States was in “very good shape” with China regarding a potential trade deal.

Meanwhile, Canada also advanced its trade negotiations with the United States, with Prime Minister Mark Carney maintaining direct contact with President Trump, Industry Minister Melanie Joly confirmed.

Oil markets have remained highly sensitive to developments in global trade policy, as tariff uncertainties and U.S. levies continue to influence economic indicators and energy demand projections. In a related development, top oil exporter Saudi Arabia announced it would lower its official selling prices for crude to Asia in July, bringing them near two-month lows. However, the reduction was more modest than anticipated, following the OPEC+ alliance’s decision to increase output by 411,000 barrels per day starting in July.

Saudi Arabia had reportedly advocated for a more substantial production hike as part of a broader effort to regain market share and reinforce production discipline among OPEC+ members, which include the Organization of the Petroleum Exporting Countries and allied producers such as Russia.