Oil Rises Slightly, Hopes of Easing US-China Trade Tensions
Oil prices rebounded after President Donald Trump's administration signaled an openness to easing trade tensions with China, the world's two largest oil consumers. Brent crude rose above $63 per barrel, while West Texas Intermediate (WTI) neared $60 per barrel. This rise follows a sharp 3.8% drop on Friday, the biggest drop since August.
Although Trump still plans to impose additional 100% tariffs on Chinese goods starting November 1, he expressed readiness to reach a deal with Beijing. China also invited the United States to dialogue and warned of retaliation if there were further threats. This sentiment gave oil prices some breathing room after the market had anticipated the worst-case scenario.
However, analysts cautioned that the current oil price increase is more of a rebound or closing of positions after massive selling, rather than a sign of fundamental change. Without real progress in trade negotiations, the price increase is unlikely to last.
Meanwhile, China's decision to impose additional fees on US-owned vessels arriving at its ports starting October 14 has added to oil market uncertainty. These costs have led to shipment cancellations and soaring shipping rates, which could impact global oil supplies.
Furthermore, the fragile ceasefire between Israel and Hamas has also somewhat eased concerns about oil supply disruptions from the Middle East, the region that produces a third of the world's oil. However, increased production from OPEC+ has the potential to increase the oil oversupply already predicted for later this year. (asd)
Source: Newsmaker.id
