Oil Prices Edge Up On Hopes For US-China Trade Talks
Oil prices held steady on Thursday, supported by hopes for a breakthrough in upcoming trade talks between the US and China, the world's two largest oil consumers.
Brent crude futures were up 43 cents, or 0.7%, at $61.55 a barrel, while U.S. West Texas Intermediate crude was up 49 cents, or 0.8%, at $58.56 a barrel by 0803 GMT.
The market was almost steady at just above $61 a barrel, said SEB analyst Ole Hvalbye, which, along with some optimism about the current tariff situation with talks between the US and China, provided support.
U.S. Treasury Secretary Scott Bessent will meet China's top economic official on May 10 in Switzerland for talks on a trade war that is disrupting the global economy. The two countries are the world's two largest economies and the impact of their trade dispute is likely to dampen growth in crude consumption.
At the same time, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, are set to increase oil production, which will add to pressure on prices.
Analysts at Citi Research lowered their three-month Brent forecast to $55 a barrel from $60 previously, but maintained their longer-term forecast of $60 a barrel this year.
A U.S.-Iran nuclear deal could push Brent prices down to $50 a barrel as supply increases in the market, but if no deal is reached, prices could rise to more than $70, they added. Overnight, the U.S. Federal Reserve left interest rates unchanged but highlighted the risks of higher inflation and unemployment. "The Fed signaled that rates are likely to remain on hold until the impact of tariffs becomes clearer. This is boosting the U.S. dollar, adding to the headwinds facing the broader commodity market," ING analysts said in a report on Thursday.
Source: Investing.com
