FX.co ★ Oil Ticks Up on Hopes of Easing US-China Trade Tensions

Crude oil futures for West Texas Intermediate (WTI) increased to approximately $63.1 per barrel on Monday, buoyed by the anticipation of reduced trade tensions between the United States and China. While it remains unclear if formal trade talks have commenced between the two nations, President Donald Trump recently moderated his stance on China. Concurrently, Beijing has excluded certain U.S. imports from its 125% tariff list. However, the overall upward movement might be limited, given the progress in U.S.-Iran nuclear discussions, which raises concerns over the potential reintroduction of Iranian oil into the market. Moreover, the possibility of OPEC+ increasing production for a second consecutive month adds to the cautious outlook. In other related developments, over the past weekend, President Trump suggested that Russian President Vladimir Putin might be delaying the resolution of the Ukraine conflict and indicated that additional sanctions could be necessary after his meeting with Ukrainian President Volodymyr Zelensky.