West Texas Intermediate (WTI), the US crude benchmark, was trading around $63.50 during the Asian session on Friday (4/18). WTI prices rose to a two-week high amid hopes for a trade deal between the United States and the European Union and new US sanctions on Iran. Trading volumes are likely to be light on Good Friday.

US President Donald Trump and Italian Prime Minister Giorgia Meloni met in Washington, signaling hopes for a resolution to the trade dispute that has strained US-European relations. "We're not going to have much trouble making a deal with Europe or anybody else, because we have something that everybody wants," Trump told reporters.

New US sanctions to curb Iran's oil exports continued to raise supply concerns and boost WTI prices. The statement noted that the US continues to aggressively sanction Iran under the Trump-era 'maximum pressure' policy. As long as Iran seeks to generate oil revenues to fund its destabilizing activities, the US will hold Iran and all its sanctions evaders accountable.

"The US continues to aggressively sanction Iran and impose sanctions on buyers of Iranian oil. OPEC+ has also provided updates and reassurances to the market, stating that they remain in control with the flexibility to cut production if needed," said analysts at energy consultancy Gelber and Associates.

On the data front, the Energy Information Administration's (EIA) weekly report showed that US crude stocks rose by 515,000 barrels for the week ending April 11, compared with a gain of 2.553 million barrels in the previous week. Market consensus had forecast a build of 400,000 barrels. (Newsmaker23)

Source: FXstreet