Oil Prices Rise Amid Trade Talk Optimism Between the United States and China
Investors anticipate outcomes from U.S.-China trade negotiations, while Saudi oil supplies to China are expected to decline.
Oil prices increased yesterday as investors awaited the results of U.S.-China trade discussions and anticipated a slight decrease in Saudi oil supplies to China.
During trading, Brent crude futures rose by 44 cents, or 0.7%, to reach $67.48 per barrel, continuing the gains seen earlier on Monday.
West Texas Intermediate (WTI) crude for the U.S. market also climbed by 43 cents, or 0.7%, to settle at $65.72 per barrel.
Harry Chillingarian, head of research at Onyx Capital, noted a prevailing sense of optimism surrounding the trade talks, stating that prices received a boost from market expectations regarding the outcomes of these discussions.
Analysts at Goldman Sachs indicated that prices are recovering as fears over demand diminish, thanks to the ongoing trade negotiations between Washington and Beijing, along with positive employment data from the United States.
However, they also highlighted risks related to North American supply due to wildfires in Canada.
An agreement on trade between the U.S. and China could bolster global economic forecasts and enhance demand for commodities, including oil.
Additionally, a Reuters survey revealed that OPEC's oil production increased in May, although the rise was limited.
The OPEC+ group, which accounts for about half of the world's oil production and includes OPEC members along with allies such as Russia, is working to accelerate the plan to eliminate the last remnants of production cuts.
During trading, Brent crude futures rose by 44 cents, or 0.7%, to reach $67.48 per barrel, continuing the gains seen earlier on Monday.
West Texas Intermediate (WTI) crude for the U.S. market also climbed by 43 cents, or 0.7%, to settle at $65.72 per barrel.
Harry Chillingarian, head of research at Onyx Capital, noted a prevailing sense of optimism surrounding the trade talks, stating that prices received a boost from market expectations regarding the outcomes of these discussions.
Analysts at Goldman Sachs indicated that prices are recovering as fears over demand diminish, thanks to the ongoing trade negotiations between Washington and Beijing, along with positive employment data from the United States.
However, they also highlighted risks related to North American supply due to wildfires in Canada.
An agreement on trade between the U.S. and China could bolster global economic forecasts and enhance demand for commodities, including oil.
Additionally, a Reuters survey revealed that OPEC's oil production increased in May, although the rise was limited.
The OPEC+ group, which accounts for about half of the world's oil production and includes OPEC members along with allies such as Russia, is working to accelerate the plan to eliminate the last remnants of production cuts.
Translation:
Translated by AI
