Oil prices were little changed on Friday morning after rising more than 3% in the previous session, as trade tensions between top oil consumers the U.S. and China showed signs of easing and Britain announced a "breakthrough" trade deal with the United States.

Brent crude rose 7 cents, or 0.1%, to $62.91 a barrel while U.S. West Texas Intermediate crude rose 7 cents, or 0.1%, to $59.98 a barrel by 0121 GMT. On Thursday, Brent closed up 2.8%, or $1.72, and WTI gained 3.2%, or $1.84.

U.S. Treasury Secretary Scott Bessent will meet with China's top economic official, Vice Premier He Lifeng, in Switzerland on May 10 to try to resolve a trade dispute that has threatened growth in crude consumption. Separately, U.S. President Donald Trump and British Prime Minister Keir Starmer announced that Britain had agreed to lower tariffs on U.S. imports to 1.8% from 5.1%. The U.S. cut tariffs on British cars but kept 10% tariffs on most other goods.

Elsewhere, the Organization of the Petroleum Exporting Countries and its allies - or OPEC+ - are planning to increase output, which could weigh on oil prices. A Reuters survey found that OPEC oil output fell slightly in April as output cuts in Libya, Venezuela and Iraq outweighed planned output increases.

Tighter U.S. sanctions on Iran could curb supply and push prices higher. Sanctions on two small Chinese refiners for buying Iranian oil have made it difficult for them to receive crude and forced them to sell their products under alternative names, sources told Reuters on Thursday. (Newsmaker23)

Source: Reuters