Oil prices remained steadfastly glued to $65 a barrel, as they have been for more than three weeks, with easing trade tensions helping offset concerns about a brewing supply glut later this year. 

Brent inched lower, but held on to most of its gains from Thursday and was on track for its first weekly increase since mid-May. President Donald Trump and his Chinese counterpart, Xi Jinping, agreed to further trade talks over tariffs and supplies of rare earth minerals.

The positive signals come against the backdrop of an oil market that has been increasingly rangebound over recent weeks. Prices have traded in a $4 band since the middle of May and a gauge of volatility for US crude futures is at the lowest level since early April. 

Oil has been buffeted in Trump's second term, as trade tensions between the world's two largest economies menace demand. At the same time, the OPEC+ alliance has been adding barrels back to the market at a faster-than-expected rate, further clouding an already weak outlook for the second half of the year. 

"The market looks balanced in 2Q/3Q on our estimates as oil demand rises in summer and peaks in July-August, matching supply increases from OPEC+," HSBC analysts including Kim Fustier wrote. "Deteriorating fundamentals after summer raise downside risks to oil prices."

Brent for August settlement slipped 0.3% to $65.13 a barrel at 10:17 a.m. in London.

WTI for July delivery declined 0.4% to $63.11 a barrel.

Source : Bloomberg