FX.co ★ WTI Oil Jumps as US-China Talks Rekindle Trade Hopes

WTI crude oil futures surged by approximately 3.2%, closing at $59.9 per barrel on Thursday. This uptick was driven by a wave of optimism surrounding the potential progress in the upcoming trade discussions between the United States and China, significant influencers on global oil consumption. The optimism arose following reports that US Treasury Secretary Scott Bessent is scheduled to meet with China's top economic official on May 10 in Switzerland to negotiate a resolution to the ongoing trade dispute. The persistent tensions between the US and China have fueled concerns about a decrease in global crude demand, but signs of diplomatic engagement have helped alleviate market apprehensions. Moreover, the announcement of a trade agreement between the US and the UK contributed to the positive outlook. On the supply front, OPEC+ has plans to boost production, potentially capping further price increases. Additionally, the oil market remains highly sensitive to geopolitical developments, including the potential implications of a US-Iran nuclear agreement on supply levels.