At the start of the new week, prices for West Texas Intermediate (WTI) crude oil are attempting to stay near Friday's highs.
Senior U.S. officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, are scheduled to meet with Chinese Vice Premier He Lifeng in London to discuss resolving trade disputes. These talks are fueling hopes for a trade agreement between the world's two largest economies, which could support economic growth and boost demand for oil. Additionally, renewed selling of the U.S. dollar is providing extra support for commodity prices.
The market initially reacted positively to stronger-than-expected U.S. employment data, but the effect quickly faded due to concerns about worsening fiscal conditions in the U.S. and expectations that the Federal Reserve may cut interest rates in 2025. This is restraining dollar bulls, thereby supporting oil prices.
Investors also took note of OPEC+'s decision, announced on May 31, to significantly increase production starting in July. This is seen as a signal for a moderate correction, which could be viewed as a buying opportunity, although gains are expected to remain limited. Technically, Friday's sustained breakout through the $63.50 supply zone has become a key trigger for bulls, confirming a positive outlook in the absence of significant macroeconomic releases from the U.S. Moreover, oscillators across all timeframes remain in positive territory, further supporting the optimistic outlook.
