Oil prices edged up on Friday but fell for the week, pressured by market expectations of a supply glut and uncertainty surrounding tariff talks between the U.S. and China.

Brent crude settled 32 cents higher at $66.87 a barrel, bringing losses to 1.6% for the week. U.S. West Texas Intermediate crude rose 23 cents to $63.02 a barrel, marking a weekly decline of 2.6%.

China exempted some U.S. imports from its high tariffs in a sign on Friday that the trade war between the world's top two economies may be easing, although Beijing quickly dismissed U.S. President Donald Trump's assertion that negotiations were underway.

"Traders now see further upside (in crude prices) as unlikely in the short term due to the ongoing trade war between the world's top consumers and speculation that OPEC+ could accelerate production increases from June," said Saxo Bank analyst Ole Hansen.

Oil prices fell earlier this month to their lowest in four years after tariffs fueled investor concerns about global demand and a selloff in financial markets.

While the risk is that a weaker economy will erode demand, supply could swell.

Some OPEC+ members have suggested the group accelerate oil output increases for a second month in June, Reuters reported earlier this week.

An end to the war in Ukraine could also potentially boost supply if it allows more Russian oil to reach global markets.

A three-hour meeting on Friday between Russian President Vladimir Putin and Trump envoy Steve Witkoff was constructive and narrowed differences on ending the war in Ukraine, Kremlin aide Yuri Ushakov said.

In an indication of future supply, the number of drilling rigs aimed at oil rose by 2 to 483 in the week to April 25, data from oil services firm Baker Hughes showed on Friday. (Newsmaker23)

Source: Reuters