Oil prices edged higher on Friday as bargain buying offset an improving supply outlook. At 00:40 ET (04:40 GMT) U.S. WTI crude futures rose 0.51% to $69.04 a barrel, while Brent crude futures gained 0.65% to $72.27 a barrel. Derivative indices moved modestly, with the US Dollar Index down 0.16%, LCO up 0.50%, CL up 0.35%, and Brent Oil (Derivatives) US Dollar up 1.86%.
Investors trimmed bearish positions ahead of the U.S. holiday weekend, a move aided by a softer‑than‑expected U.S. jobs report that reduced expectations of an imminent Federal Reserve rate hike and left the dollar index broadly steady.
Geopolitical risk remained on traders’ radar. President Donald Trump indicated that Iran had “agreed to just about everything we need,” while the Wall Street Journal reported Tehran’s refusal to renounce its claims over the Strait of Hormuz in exchange for access to frozen Iranian funds. The United States has reportedly offered financial incentives, including access to frozen assets, to secure unrestricted passage, but Iran has so far rejected the proposal.
ANZ Bank highlighted that a recent build‑up in short positions has been a key driver of crude‑futures weakness, though some investors have pared bearish bets. The bank noted that Brent’s futures curve remains in contango, with prompt prices trading below longer‑dated contracts, signalling expectations of near‑term oversupply. Recovering Gulf crude flows, especially through the Strait of Hormuz, have reinforced this view, while Saudi Arabia’s exports have rebounded to roughly 90% of pre‑war levels.
Lower crude prices have encouraged buying by China’s independent refiners, supported by more flexible pricing from Saudi Arabia and Kuwait. Despite this, Iran continues to struggle to market its crude, with more than 58 million barrels remaining in floating storage and over 90% of that volume yet to secure a destination, according to Vortexa data.
Markets are now watching further developments in U.S.–Iran negotiations, Gulf crude flows and signs of demand recovery after the U.S. holiday weekend for fresh direction in oil prices.