Oil prices ended the week higher, supported by a weaker US dollar, signs of strong US fuel demand, and fresh geopolitical tensions, despite pressure earlier in the week due to rising US inventories and trade concerns.

The international benchmark Brent crude was trading at $68.61 per barrel at 2.25 p.m. local time (1125 GMT) on Friday, marking a rise of around 1.01% compared to last week's closing price of $67.92.

Similarly, the American benchmark West Texas Intermediate (WTI) traded at $66.19 per barrel, up approximately 0.8% from last Friday's close of $65.65.

Oil markets initially came under pressure early in the week after the OPEC+ alliance announced a larger-than-expected production increase of 548,000 barrels per day for August, stoking fears of oversupply.

At the same time, fresh trade tensions emerged as US President Donald Trump threatened new and higher tariffs on several countries starting August 1, weighing on demand expectations.

Midweek, prices slipped further following a 7.1 million barrel increase in US crude inventories reported by the American Petroleum Institute, against market expectations of a draw.

The build came despite strong travel activity over the July 4 holiday, signaling weaker-than-anticipated underlying demand.

However, oil prices regained ground as the week progressed. Support came from the US Energy Information Administration reporting a 2.7 million barrel drop in gasoline inventories, reflecting robust fuel consumption during the holiday period.

A weaker US dollar also lifted prices by making oil cheaper for buyers using other currencies.

Additional momentum came from renewed expectations of US monetary policy easing. Minutes from the Federal Reserve's (Fed) recent meeting showed several policymakers favoring rate cuts this year, while President Trump reiterated calls for lower interest rates. Lower rates typically weaken the dollar and boost commodity demand.

On Friday, oil prices edged higher after Trump announced he would make a major statement on Russia next week, raising the prospect of new sanctions against a key oil producer.

Comments from Fed officials further supported sentiment, as some signaled openness to rate cuts as early as this month.

Despite these gains, investors remained cautious over Trump's tariff plans, including proposed blanket tariffs of up to 20% on most trading partners and a 35% tariff on Canadian goods starting August 1.

Analysts warn that rising tariffs could undermine global economic growth, dampen industrial activity, and curb oil demand.

Overall, oil prices managed to post a weekly increase, driven by a combination of geopolitical risk, positive US demand data, and a softer dollar, even as concerns about oversupply and trade tensions capped stronger gains.

by a weaker US dollar, signs of strong US fuel demand, and fresh geopolitical tensions, despite pressure earlier in the week due to rising US inventories and trade concerns.

The international benchmark Brent crude was trading at $68.61 per barrel at 2.25 p.m. local time (1125 GMT) on Friday, marking a rise of around 1.01% compared to last week's closing price of $67.92.

Similarly, the American benchmark West Texas Intermediate (WTI) traded at $66.19 per barrel, up approximately 0.8% from last Friday's close of $65.65.

Oil markets initially came under pressure early in the week after the OPEC+ alliance announced a larger-than-expected production increase of 548,000 barrels per day for August, stoking fears of oversupply.

At the same time, fresh trade tensions emerged as US President Donald Trump threatened new and higher tariffs on several countries starting August 1, weighing on demand expectations.

Midweek, prices slipped further following a 7.1 million barrel increase in US crude inventories reported by the American Petroleum Institute, against market expectations of a draw.

The build came despite strong travel activity over the July 4 holiday, signaling weaker-than-anticipated underlying demand.

However, oil prices regained ground as the week progressed. Support came from the US Energy Information Administration reporting a 2.7 million barrel drop in gasoline inventories, reflecting robust fuel consumption during the holiday period.

A weaker US dollar also lifted prices by making oil cheaper for buyers using other currencies.

Additional momentum came from renewed expectations of US monetary policy easing. Minutes from the Federal Reserve's (Fed) recent meeting showed several policymakers favoring rate cuts this year, while President Trump reiterated calls for lower interest rates. Lower rates typically weaken the dollar and boost commodity demand.

On Friday, oil prices edged higher after Trump announced he would make a major statement on Russia next week, raising the prospect of new sanctions against a key oil producer.

Comments from Fed officials further supported sentiment, as some signaled openness to rate cuts as early as this month.

Despite these gains, investors remained cautious over Trump's tariff plans, including proposed blanket tariffs of up to 20% on most trading partners and a 35% tariff on Canadian goods starting August 1.

Analysts warn that rising tariffs could undermine global economic growth, dampen industrial activity, and curb oil demand.

Overall, oil prices managed to post a weekly increase, driven by a combination of geopolitical risk, positive US demand data, and a softer dollar, even as concerns about oversupply and trade tensions capped stronger gains.