Oil Climbs as Traders Wait for Details From US-China Trade Talks
Oil edged higher as traders waited for details on US-China trade talks, after both countries reported “substantial progress” following two days of negotiations aimed at de-escalating a trade war that threatens crude demand.
Brent traded above $64 a barrel after last week notching up its first weekly gain in three, while West Texas Intermediate was near $61. Following talks in Geneva, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer said that they were upbeat on progress and would share more information on Monday, with the positive sentiment echoed by their Chinese counterparts.
Crude has recouped some ground after plunging at the start of last month on concerns President Donald Trump’s trade war will dent economic growth, even as OPEC+ boosts production. Futures are still down more than a fifth from a mid-January peak as the prospect of lower demand and higher supply increases the likelihood of a glut later in the year.
“Whether the tariff issue can be fundamentally resolved and to what extent tensions will ease remains to be verified,” said Gao Jian, an analyst at Qisheng Futures Co. “Unless the oil market sees more real, favorable developments on the fronts of macro, fundamentals or geopolitics, upside for further rebound is limited.”
Source: Bloomberg
