Oil rises 3% by supporting the hopes of declining trade tension between America and China

Oil prices increased by 3% during trading today, Thursday, driven by new hopes for the release of trade negotiations between the United States and China, the largest oil consumers globally.

Brent crude futures reached $ 62.84 a barrel, an increase of 2.8%, while US West Texas Intermediate crude increased by 3.2% to $ 59.91 a barrel.

It is expected that US Treasury Secretary Scott Bessent will meet with Chinese officials in commercial talks held in Switzerland on the tenth of May, amid analyst warnings that the fluctuations in the oil market are continuing as a result of the trade conflict between the two largest economies in the world.

Jim Richloush, President of Recepouch and Co., reported that the new fluctuations are caused by the customs duties that replace the global risk allowance.

On the other hand, US President Donald Trump and British Prime Minister Kiir Starmer announced a trade agreement that includes keeping customs duties at 10% on British goods, while Britain will reduce its fees to 1.8%. In the same context, it is expected that the OPEC+ coalition decision will affect the increase in the market balance.

Despite the planned increase in oil production, a Reuters survey showed a decrease in OPEC in April as a result of US sanctions and turmoil in countries such as Venezuela, Iraq and Libya. According to the City Research analysis, expectations indicate that the price of Brent crude may decrease to $ 55 a barrel in the short term, while it will remain at $ 60 in the long run, taking into account the political changes related to the Iranian nuclear agreement.