LONDON – Oil prices continued their upward trajectory into the first trading day of the new week, fueled by renewed optimism over U.S.-China trade negotiations, which could ease global economic tensions.
After posting a 4% gain last week, Brent crude was trading near $66 per barrel early Monday. U.S. West Texas Intermediate (WTI) crude also hovered around the $65 level.
The resumption of trade talks between the world’s two largest economies raised hopes for progress in resolving disputes that have shaken global markets throughout the year.
Earlier in the year, oil prices had fallen approximately 11% amid concerns that escalating trade tensions could hamper global economic growth and curb energy demand.
Additional downward pressure on oil markets came from the OPEC+ alliance, whose faster-than-expected production increases sparked fears of a supply glut in the second half of the year.
Gao Mingyu, Chief Energy Analyst at SDIC Essence Futures Co., noted: “If the UK meetings continue to send signals of optimism, it could help offset the negative economic impact of the trade war. Once the short-term downside from OPEC+’s July production hikes is absorbed, improved macro sentiment, stronger seasonal demand, and ongoing geopolitical risks are likely to provide support.”
Since mid-May, Brent futures have been trading within a narrow range of less than $4, while volatility indicators remain near their lowest levels since early April.
Source: Bloomberght/ Prepared by: İlayda Gök