Oil Rebounds as China Responds to Trade Talks
Oil prices climbed in the global commodity market after China indicated it was open to new trade talks with the United States, fueling optimism of a potential thaw in the prolonged trade war that has unsettled global markets.
Brent crude increased by around 0.84%, trading at $62.32 per barrel. US benchmark West Texas Intermediate increased by about 0.86%, settling at $59.25 per barrel, compared to its prior session close of $58.73.
China’s Ministry of Commerce said it was evaluating a proposal from Washington for renewed negotiations. The possibility of reopening dialogue helped ease fears that the ongoing dispute could tip the global economy into recession and weaken oil demand.
The rally in oil was also supported by US President Donald Trump’s threat to impose secondary sanctions on countries buying Iranian oil. His comments came after the postponement of nuclear talks between Washington and Tehran.
The US administration has reactivated its ‘maximum pressure’ campaign aimed at cutting Iran’s oil exports to zero.
Meanwhile, expectations that eight members of the OPEC+ group will continue raising output have reignited concerns over a potential supply glut in the market.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, are scheduled to meet on 5 May to discuss production plans for June, with proposals to accelerate output increases likely to be on the agenda.
Analysts have warned of growing imbalances between supply and demand.
While production continues to rise in non-OPEC+ countries, global oil demand growth is seen as structurally slowing, raising the prospect of downward pressure on prices if the group maintains its current trajectory. # Oil Rebounds as China Responds to Trade Talks $17bn: Nigeria Positions as World Bank’s Largest Portfolio in Africa
