Oil prices rose on Friday, after rising about 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 43 cents, or 0.68%, to $63.27 a barrel while U.S. West Texas Intermediate crude rose 42 cents, or 0.7%, to $60.33 a barrel by 0731 GMT. Both contracts closed up nearly 3% on Thursday.

U.S. Treasury Secretary Scott Bessent will meet 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. "If the two set a date to start formal trade negotiations and agree to roll back their current high tariffs on each other while talks continue, the market will get a break and crude could rise $2-$3 a barrel," said Vandana Hari, founder of oil market analysis provider Vanda Insights.

China's exports rose faster than expected in April, while imports narrowed their decline, customs data showed on Friday, giving Beijing some relief ahead of the tariff talks that broke the ice.

The country's crude imports in April fell from the previous month but rose 7.5% year-on-year, boosted by a surge in sanctioned shipments and stockpiling by the country's refiners during maintenance outages.

Separately, U.S. President Donald Trump and British Prime Minister Keir Starmer announced 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. "Any other U.S. trade deal, after the U.K. deal, with other major trading partners would have little impact on oil sentiment," Hari added.

Elsewhere, the Organization of the Petroleum Exporting Countries and its allies - or OPEC+ - are planning to increase output, which could further pressure oil prices. A Reuters survey found 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 refineries 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.

Meanwhile, Pakistan's armed forces carried out "several attacks" along India's western border late Thursday and early Friday, the Indian army said, as tensions between the nuclear-armed neighbors escalate.

Rystad Energy analysts expect both countries to step up crude procurement and refinery activity amid the rising tensions.

"Diesel demand is likely to pick up amid heightened military mobilization, while airline fuel consumption is down as airspace closures lead to flight diversions, cancellations and skyrocketing airfares," Rystad's Rohan Goindi said in a note. (Newsmaker23)

Source: Reuters