US-China negotiations led to a rise in oil prices.

Significant Increase in Petrol Prices

On Friday, the price of Brent crude oil rose to a level of $65.95 per barrel and finished the day at $65.20. Today, as of 09:34, the price of Brent crude oil has increased by 0.57 percent to reach $65.57. At the same time, West Texas Intermediate (WTI) crude oil is trading at $61.88 per barrel.

US-China Trade Talks and Their Effects

This increase in oil prices comes after positive progress in trade negotiations between the world's two largest oil consumers, the US and China. The delegations led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent met on October 25-26 in Kuala Lumpur. Following new negotiations addressing the tensions caused by tariff increases, it has been announced that the parties have reached a consensus.

Important Developments and Expectations

Li Chenggang, China's International Trade Representative, stated that the parties have reached a pre-agreement on tariffs. US Trade Representative Jamieson Greer noted that a framework agreement has been reached, which will be reviewed by the leaders of both countries. In this context, the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping on Thursday presents a significant opportunity for the advancement of trade relations.

Fed's Interest Rate Policies and Market Response

Additionally, expectations of interest rate cuts by the US Federal Reserve (Fed) continue to have a positive effect on oil prices. The Consumer Price Index (CPI) data, which was delayed due to the federal government shutdown, came in lower than expected. However, markets are viewing the Fed's upcoming meeting on October 28-29 as certain to lead to a 25 basis point cut in the policy interest rate. There is also an expectation of a similar easing at the December meeting.

Sanctions on Russia and Market Dynamics

On the other hand, concerns continue regarding the impact of US sanctions on the Russian oil sector in the markets. Experts remind that Russia has previously managed to overcome restrictions and are taking a cautious approach regarding the effectiveness of the sanctions. At the center of the discussion is the question of how much Russian oil buyers, such as India and China, will yield to US pressure.

Technical Analysis and Price Expectations

From a technical perspective, Brent crude has resistance at $66.29 and support at $65. The market's trading dynamics will continue to shape around these levels.