Oil prices continue to rise amid hopes of commercial breakthrough between China and America

Oil prices continued today, Wednesday, after they jumped by more than 3% during the previous session, driven by the American and China agreement to start trade negotiations this week, which strengthened hopes by calming tensions between the two largest economies in the world, as Brent crude clouded from the level of $ 63 a barrel, while Texas crude settled near $ 60.

US Treasury Secretary Scott Besent and commercial actor Jimson Jarir will meet with Chinese officials in Switzerland later this week, in the first confirmed talks since US President Donald Trump imposed wide customs duties on Chinese imports.

Oil prices have declined since late January due to the escalation of commercial tensions, and OPEC+alliance plans to increase broken supplies, and the company “Diamondback Energy”, the largest independent rock oil producer in the Bermean Basin, expects this decrease in prices to decline in US shale oil.

Oil production forecasts

The US Energy Information Administration has reduced its forecast for crude oil production this year, as it expects 13.42 million barrels per day, according to a report issued yesterday, and these estimates do not include the recent increase in the supplies approved by the “OPEC+” coalition on the weekend.

It coincides with this, the American Petroleum Institute, which is funded by industry, reported that US crude stocks decreased 4.49 million barrels last week, and the main storage center stocks in Oklahoma fell, and official data from the US government are expected to be released later today Wednesday.