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Crude oil prices edged slightly higher on Friday but still logged a third consecutive week of losses, as mounting evidence of a widening supply surplus overshadowed cautious optimism over US–China trade relations.

Brent crude futures settled up 23 cents, or 0.38%, at $61.29 a barrel.

WTI crude gained 8 cents, or 0.14%, to close at $57.54 a barrel. Despite the modest uptick, both benchmarks have shed nearly 3% for the week, reflecting growing concerns that the market is slipping back into surplus.

Traders took some comfort after Washington signalled optimism that its upcoming talks with Beijing could pave the way for a more long lasting trade accord. The reassurance helped ease fears that the prolonged tit-for-tat between the world’s two largest crude consumers could further dampen energy demand.

Still, the market’s upside remained capped by signs that oversupply continues to build. The International Energy Agency this week raised its forecast for next year’s global oil surplus by about 18%, reinforcing worries about sluggish demand growth. In the US, a major storage broker reported a surge in bids for tank space at Cushing, Oklahoma—the country’s key crude hub—suggesting that traders are already bracing for swelling inventories.

Written: Rochelle Nguyen