Oil Rises on Hopes Trump Will Unveil U.S.-UK Trade Deal
Oil prices rose as Donald Trump is expected to announce a deal with Britain that could signal the direction of his global trade war.
Brent rose near $62 a barrel after falling 1.7% in the previous session. While the U.S. president did not identify the country or provide details about the deal in the Truth Social post, people familiar with the matter said the deal is expected to be with Britain.
The news comes ahead of trade talks between U.S. and Chinese officials this week, although Trump said Wednesday he was not willing to roll back tariffs on China first to start negotiations.
Crude has been on a tear recently on concerns about the potential hit to global growth from Trump’s hefty tariffs, as well as OPEC+’s recent decision to boost idled production.
American shale producers are cutting output in the Permian Basin as oil prices have slumped. “The news of a trade deal is definitely helping market sentiment,” said Soni Kumari, commodity strategist at ANZ Group Holdings in Bengaluru. "While market sentiment remains gloomy due to uncertain demand outlook and rising supply from OPEC+, fundamentals are not so gloomy." In the U.S., crude inventories fell for a second week to their lowest since late March, according to the Energy Information Administration. Stockpiles at the Cushing, Oklahoma, storage hub also fell.
Source: Bloomberg
