FX.co ★ Oil Prices Climb on Trade Hopes

WTI crude oil futures experienced a 1.8% increase, closing at $61 per barrel on Friday. This movement marked a weekly rise exceeding 4%, buoyed by a reduction in trade tensions between the United States and China, which positively influenced market sentiment. Optimism was further heightened by the announcement that US Treasury Secretary Scott Bessent is scheduled to meet with China's Vice Premier in Switzerland on May 10, indicating possible progress in trade negotiations. Complementing this optimistic tone, Chinese export figures outperformed expectations in April, while imports of crude oil rose by 7.5% compared to the same period last year, a result of stockpiling amid refinery maintenance. Additionally, a separate trade deal between the US and UK enhanced the global trade outlook. Despite these encouraging developments, there remains some caution due to OPEC+’s plans to increase production, which could potentially dampen prices. Moreover, tighter US sanctions on Iran might constrain supply, introducing new uncertainties into the market.