EBC Markets Briefing | Crude prices see strong weekly gains

Oil prices firmed on Friday and was on course for a big weekly gain, on news that the Washington and Beijing agreed to more trade talks following a phone call between Trump and Xi.

Russia launched drones and ballistic missiles at multiple targets across Ukraine, Kyiv authorities said on Friday. It came after the two countries failed to reach a ceasefire deal in Istanbul.

Meanwhile, Iran was set to reject a US nuclear deal proposal that would be key to easing sanctions on the major oil producer. The two OPEC+ members risk facing tougher sanctions.

Saudi Arabia was purportedly considering additional significant output hikes in a bid for market share. The kingdom has cut oil prices to Asia as demand faltered amid increased tariffs.

In Canada, wildfires burning in Alberta have affected more than 344,000 bpd of oil sands production, or about 7% of the country's overall crude output, according to Reuters calculations.

US crude inventories fell much more than expected last week, while fuel inventories rose, EIA data showed. Local refiners ramped up production with the start of the summer driving season.

WTI crude is very close to its 50 SMA and the recent trading range remain intact. We expect it to lose around one dollar in the upcoming sessions.

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