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Oil Prices Climb Amid U.S.-EU Trade Hopes and Russian Export Restrictions

Oil prices continued to move higher on Friday morning in Asia, supported by renewed optimism surrounding U.S.-EU trade negotiations and expectations that Russia will restrict gasoline exports. Even reports of Chevron’s return to Venezuela, which analysts estimate could add around 200,000 barrels per day to global supply, have been unable to pull prices lower.

U.S. Energy Exports to China at Zero Ahead of Trade Talks

This is taking place ahead of the next round of trade talks between the two countries, to take place in Sweden next week. U.S. Treasury Secretary described current relations as being “in a good place.” Chinese officials, for their part, have signaled a readiness on the part of the country’s government to reach a mutually beneficial deal. An official statement said that the Chinese side hoped for an atmosphere of “mutual respect, peaceful coexistence and win-win cooperation,” at the talks.

Oil at the Center as U.S. and Brazil Edge Toward a Trade War

Brazil is preparing to defend its oil export sector as U.S. President Donald Trump threatens to impose a 50% tariff on Brazilian imports starting August 1. The move has escalated tensions between the two countries, with Brazilian President Luiz Inácio Lula da Silva vowing reciprocal action: “If he charges us 50%, we’ll charge him 50%,” Lula told local media outlet Record.

Saudi Aramco in U.S. Supply Talks with Commonwealth LNG

This marks the strongest signal yet that Aramco intends to take a material position in the U.S. LNG sector. It also follows earlier exploratory efforts with projects such as Delfin LNG and Energy Transfer’s Lake Charles facility, though those discussions have not resulted in formal agreements. The Commonwealth negotiations, if concluded, would give Aramco a direct channel into the fast-growing U.S. Gulf Coast export market, amid rising demand in Asia and Europe.

U.S. Department of Energy Warns Risk of Blackouts Is Rising

The North American Reliability Corp. has been warning of blackouts for two years now, citing extreme temperatures but also increased reliance on weather-dependent sources of electricity, notably wind and solar installations. The latest warning came earlier this year, with NERC attributing the danger to the surge in demand for electricity. The surge, in turn, was driven by the proliferation of data centers, which consume enormous amounts of electricity.