Oil prices fell on Friday as concerns about the Russian-Ukrainian war faded away with a peace deal seeming more likely than ever now, which could push the US to lift its sanctions on Russia energy exports. 

US President Donald Trump said both Ukrainian and Russian presidents expressed desire for peace during separate phone calls with him.

Trump said he directed US officials to commence talks aimed at ending the war in Ukraine as quickly as possible.

On trading, Brent April futures fell 0.4%, or 28 cents to $74.74 a barrel, with a weekly profit of 0.1%.

US crude futures due in March slipped 0.75%, or 55 cents to $70.74 a barrel, with a weekly loss of 0.4%.

Gold prices fell on Friday even as the dollar declined against most major rivals, with the precious metal still heading for the seventh weekly profit in a row. 

President Trump announced plans to increase tariffs on other countries in proportion to their own tariffs on US imports, with the aim of squashing trade imbalances with US trade partners. 

Trump threatened tariffs of upwards to 100% on BRICS countries, including Brazil, China, and India. 

White House officials said the tariffs won’t get into immediate effect, and would give countries the chance to negotiate new conditions. 

Earlier data showed US retail sales fell 0.9% m/m in January, while analysts expected a 0.1% drop.

However, as recent inflation data blew past estimates, the Federal Reserve is still likely to maintain interest rates unchanged for an extended duration.

Otherwise, the dollar index fell 0.5% as of 20:03 GMT to 106.7, with a session-high at 107.1, and a low at 106.5. 

On trading, gold spot prices fell 1.7%, or $50.30 as of 20:09 GMT to $2895 an ounce, with the metal still marking a weekly profit of 0.5%.

Most US stock indices fell on Friday amid ongoing concerns about global trade.

President Trump announced plans to increase tariffs on other countries in proportion to their own tariffs on US imports, with the aim of squashing trade imbalances with US trade partners. 

Trump threatened tariffs of upwards to 100% on BRICS countries, including Brazil, China, and India. 

White House officials said the tariffs won’t get into immediate effect, and would give countries the chance to negotiate new conditions. 

Earlier data showed US retail sales fell 0.9% m/m in January, while analysts expected a 0.1% drop.

However, as recent inflation data blew past estimates, the Federal Reserve is still likely to maintain interest rates unchanged for an extended duration.

On trading, Dow Jones rose 0.2% as of 17:22 GMT to 44,602 points, while S&P 500 shed 0.1%, or 3 points to 6112 points, as NASDAQ added 0.1%, or 7 points to 19954 points. 

Global oil prices rose in American trade on Friday away from two-month lows as concerns about global trade receded, while oil prices dipped.

Gains are curbed by hopes for an end to the Ukrainian-Russian war, which might prompt the US to lift sanctions on the Russian energy sector.

Prices

US crude rose 0.75% today to $71.98 a barrel, with a session-low at $71.21.

Brent rose 0.8% to $75.81 a barrel, with a session-low at $75.04.

On Thursday, US crude rose 0.4% away from a two-month low at $70.25, while Brent added 0.35% away from December 31 lows at $74.10.

Global Trade Concerns 

The global markets are relieved that US President Trump hasn’t yet implemented his reciprocal tariff plan, with his trade officials indicating each country will be dealt with separately. 

Otherwise, the dollar index fell 0.35% today, plumbing a two-month low at 106.68 against a basket of major rivals.

Recent data showed US retail sales fell past estimates in January, renewing the prospects of another Fed interest rate cut this year.

The Russia-Ukraine War

US President Donald Trump said both Ukrainian and Russian presidents expressed desire for peace during separate phone calls with him.

Trump said he directed US officials to commence talks aimed at ending the war in Ukraine as quickly as possible.

Russia is the world’s third largest oil producer, and US sanctions on its crude exports following the invasion of Ukraine three years ago spiked oil prices in global markets.

The International Energy Agency said in its latest report that Russian oil exports will continue and expand if the United States sought alternatives for its latest sanctions announced under ex-President Biden.

US Stocks

The Energy Information Administration reported a buildup of 4.1 million barrels in US crude stocks last week to a total of 427.9 million barrels, while analysts expected a rise of 2.4 million barrels. 

Gasoline stocks rose 3 million barrels to 248.1 million barrels, while distillate stocks rose 0.1 million barrels to 118.6 million barrels.