Oil prices edged up on Friday ahead of US Independence Day as cautious optimism prevails over peace talks between the U.S. and Iran.
Brent futures rose 17 cents to $72.10 a barrel, while West Texas Intermediate climbed 14 cents to $68.83 a barrel.
US markets will close on Friday before Saturday’s holiday. Prior week, both benchmarks hit their lowest levels since late February, with Brent down 0.02% and WTI up 0.12%.
Market analyst Tim Waterer of KCM Trade said the market is cautiously optimistic about peace efforts but still wary until real evidence emerges.
With the reopening of the Strait of Hormuz, some nations are ramping up production. Kuwait’s output surged to 1.65 million barrels per day in June from May’s 580,000 bpd, according to Reuters sources.
Additionally, at least five super tankers carrying a total of 10 million barrels of Saudi oil have exited the Strait of Hormuz, with Saudi Aramco switching to spot pricing for faster sales in Asia, as reported by trade sources and shipping data.