Oil prices experienced an increase on Friday following U.S. President Donald Trump's announcement that China has agreed to purchase oil from the United States after discussions with Chinese leader Xi Jinping. Specifically, Brent crude futures for July rose by 1.49% to $107.30 per barrel, while U.S. West Texas Intermediate futures for June increased by 1.55% to $102.74 per barrel.
Trump stated in a pre-recorded interview with Fox News that China intends to buy oil from the U.S. and mentioned plans for Chinese ships to transport oil from Texas, Louisiana, and Alaska. However, it is important to note that China has not yet confirmed these energy purchases, and CNBC's attempts to obtain a comment from Chinese authorities were unsuccessful.
Additionally, the rise in oil prices was supported by an agreement between the two presidents regarding the importance of keeping the Strait of Hormuz open. A White House official reported that President Xi expressed China's opposition to the militarization of the Strait and any toll charges for its use. U.S.
Treasury Secretary Scott Bessent also indicated that China would likely assist in efforts to reopen the Strait of Hormuz, emphasizing that it is in China's interest to ensure the strait remains accessible