Oil is rising with support for trade talks with China after the announcement of the American agreement

On Thursday, oil prices rose 1% with the support of trade talks between the United States and China, after US President Donald Trump announced a “comprehensive” agreement with the United Kingdom.

Brent crude futures won the July 1.47% delivery to $ 62 a barrel, while US West Texas Intermediate crude contracts increased June 1.69% to $ 59, by 13:00 GMT.

Trump confirmed earlier today through the “Truth” platform to reach an agreement with the United Kingdom, describing it as “complete and comprehensive, and will enhance the relationship between the United States and the United Kingdom for many years to come.”

International media had expected the agreement to be announced today during a press conference at the White House, and Trump indicated that a press conference will be held at the Oval Office at 10 am (14:00 GMT).

Expectations refresh the hopes of oil

This agreement with Britain will follow many other deals that are “in serious stages of negotiation,” Trump said, which strengthened hopes of reaching an agreement with China.

The details of the agreement are not clear immediately; However, a British official had confirmed that Trump is expected to determine the outlines of the agreement at the press conference today, according to what was reported by Bloomberg.

US Treasury Secretary Scott Besent will meet with the chief Chinese economist on May 10 in Switzerland for negotiations on the trade war that shakes the global economy.

The increase in gasoline stocks in America last week increased concerns about the poor demand, which fueled analysts’ concern about the lack of consumption with the United States entering the summer demand period later this month.

At the same time, the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, will increase oil production, which increases the pressure on prices.

Request concerns are influencing oil

The disturbances resulting from the trade conflict between the two largest economies in the world are likely to lead to a decrease in the growth of crude oil consumption.

City Research analysts have reduced their expectations for prices over three months to $ 55 a barrel of Brent crude down from $ 60 in the previous expectation, but they kept their long -term expectations for a price of $ 60 a barrel for this year.

The United States and Iran may lead to an agreement on the nuclear file to a decrease in Brent prices towards $ 50 a barrel due to an increase in the market, according to analysts.

However, the failure to reach an agreement may pay it in return to the height of more than $ 70 a barrel.

However, the hopes of reaching an agreement between the United States and China after the American -British agreement revive the hopes of demand and global growth, which enhances crude prices.