Petrol Prices: US-China Optimism and Recent Developments

Fuel Prices Are Rising

Fuel prices have surged following progress made in trade talks between the US and China. This situation provides an optimistic outlook on energy demand while also increasing appetite for risky assets.

Brent and WTI Oil Prices

Brent oil has risen above 66 dollars per barrel, marking nearly an 8% increase in the past week. US crude oil (WTI) is trading around 62 dollars.

US and Chinese Leaders to Meet Face to Face

Senior negotiators announced that compromises have been reached on various issues. US President Donald Trump and Chinese President Xi Jinping are expected to meet this Thursday. This development has also led to an increase in Asian stock markets.

Changes in Tariffs

US Treasury Secretary Scott Bessent stated in an interview with CBS News that Trump’s threat of a 100% tariff on Chinese goods is "essentially off the table."

Oil Supply and Demand Analysis

Last week, oil prices rebounded from a five-month low following the US sanctions on Russia's two biggest oil producers. These sanctions helped balance concerns about a global supply glut. The decline in oil imports from Russia to India and China has increased demand for alternative oil types, contributing to the support of prices, which have been under pressure this year due to rising production from OPEC+ countries.

Market Analysis

Vanda Insights, a market analysis company based in Singapore, was founded by Vandana Hari, who stated, "Hopes that a US-China trade deal is close are a positive factor for the economy and oil demand; this morning, it adds to the risk premium from Russia. However, the foundation created by the supply glut will limit gains. Brent could likely return to the comfort zone above 60 dollars," she expressed.