Oil Prices Rise Ahead of US-China Trade Talk
Oil prices increased as markets and investors reacted positively to the US and China agreement to talk this weekend about retaliatory tariffs, while forecasts show a decline in US crude inventories.
Brent crude increased by around 1.76%, trading at $62.98 per barrel, up from $61.89 at the previous session’s close. The US benchmark West Texas Intermediate declined by about 0.22%, reaching $58.84 per barrel, compared to its prior session close of $58.71.
Prices rose following reports that U.S. and Chinese officials will meet this week to discuss tariff-related trade issues while OPEC+ output ramp-up will strike a balance.
Both US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will meet with their Chinese counterparts in Switzerland this week, marking the first formal step in trade talks since President Donald Trump imposed sweeping tariffs on China.
Bessent is scheduled to meet on May 8 with an unnamed Chinese official described by the Treasury Department as China’s “lead representative on economic matters.” Greer will meet with his Chinese counterpart to discuss ‘trade matters,’ according to the US Trade Representative’s Office.
‘Economic security is national security, and President Donald J. Trump is leading the way both at home and abroad for a stronger, more prosperous America,’ Bessent said in a statement.
Meanwhile, the US Energy Information Administration (EIA) has revised down its 2025 Brent crude oil price forecast, citing expectations of rising global inventories that are likely to exert downward pressure on prices.
The average Brent crude oil price for this year is expected to be $65.85 per barrel, down from the previous forecast of $67.87, according to the EIA’s Short-Term Energy Outlook (STEO) released late Tuesday.
The agency had forecast an even higher price in its January report, marking a total downward revision of approximately $8 per barrel. The outlook for WTI crude has also been revised lower, from $63.88 to $61.81 per barrel.
Last month’s production increase announcements from OPEC+ members have reinforced market perceptions of a supply glut and contributed to a buildup in global oil inventories. These increases are expected to weigh on prices throughout the remainder of the year.
In the first four months of 2025, inventories are estimated to have grown by an average of 300,000 bpd—a sharp contrast to the agency’s January outlook, which had projected a drawdown of more than 200,000 bpd during the same period. #Oil Prices Rise Ahead of US-China Trade Talk Lagos, BoI to Sign MoU to Improve SMEs Access to Finance
