08.05.202009:47:00UTC+00Oil Prices Rise On Demand Revival Hopes

Oil prices rose on Friday as trade war fears receded and more countries announced plans to ease their lockdown restrictions, raising hopes that demand for crude and its products will pick up.

Benchmark Brent crude jumped by 49 cents, or 1.65 percent, to $29.95 a barrel, after having fallen almost 1 percent on Thursday.

U.S. oil futures were up 75 cents, or 3.2 percent, at $24.30 a barrel, after declining nearly 2 percent the previous day.

Both contracts are heading for a second week of gains after reaching two-decade lows in April.

Investors pinned hopes for a revival in oil demand after Australia became the latest country to announce plans to reopen its economy.

The country has a three-step plan to build confidence and momentum that will see its economy get back up and running by July.

France, parts of the United States and countries such as Pakistan are also planning to ease their lockdown restrictions.

On the supply side, North American oil companies are slashing production faster than OPEC officials and industry analysts had expected.

Positive news regarding the U.S.-China trade talks also supported prices.

U.S. and Chinese trade representatives reportedly held a phone call and pledged to create favorable conditions for the implementation of the phase one trade deal signed in January, helping ease fears of a renewed trade war between the countries.