Oil prices remained mostly flat during Asian trading hours on Friday, consolidating gains made in the prior session amid renewed optimism over potential U.S. trade agreements ahead of President Donald Trump’s fast-approaching deadline. Crude markets also found support from reports suggesting that Russia may curb its gasoline exports in the near term.

As of 21:31 ET (NYSE:CVX), September-dated Brent crude futures inched up 0.2% to $69.29 a barrel, while West Texas Intermediate (WTI) crude climbed 0.2% to $66.13. The upward movement followed Thursday’s over 1% surge in both benchmarks, driven by a notable drop in U.S. crude inventories.

Trade Optimism Lifts Oil Sentiment

Investor sentiment was buoyed by developments suggesting progress on several trade fronts. Reports indicated a significant agreement between the U.S. and European Union may be close, replacing a looming 30% tariff with a lower 15% levy on most EU exports beginning August 1.

India’s Commerce Minister Piyush Goyal also expressed hope that the country could reach a deal with the U.S. to avoid proposed 26% tariffs.

“It looks like talks with the EU are moving in the right direction. These deals should help reduce uncertainty and also ease some of the demand concerns that have been lingering in the oil market,” ING analysts said in a note.

The mood was further lifted by Wednesday’s announcement of a U.S.-Japan trade pact, which cut tariffs on all Japanese imports to 15% from a previously planned 25%. The deal raised expectations that other nations might follow suit before the trade deadline, potentially boosting global trade flows.

Easing trade tensions often encourage greater economic activity and international commerce, which tends to drive oil demand through higher transportation and industrial energy use.

Russia and Venezuela in Focus for Supply Outlook

Supply-side developments also contributed to oil price stability. A Reuters report suggested Russia is preparing a broader ban on gasoline exports, possibly including oil companies, in a bid to contain domestic fuel inflation. Currently, restrictions apply only to resellers, leaving major producers free to export.

The prospect of tighter Russian fuel exports contributed to Thursday’s price rally.

In related news, Reuters also reported that the U.S. may soon permit limited oil operations in Venezuela, beginning with Chevron Corp (NYSE:CVX). Earlier this year, President Trump had canceled multiple energy licenses in Venezuela and set a late-May deadline for halting related transactions.

“This should see Venezuelan oil exports increase by a little more than 200k b/d, welcome news to US refiners that will ease some tightness in the heavier crude market,” ING analysts said.

Together, these geopolitical and trade developments continue to shape expectations for global oil supply and demand, keeping investors alert to emerging policy shifts.

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