Analysts say there is still hope for Nigeria’s fiscal balance in 2025 with oil prices increasing 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.
The United States and China are set to hold high-level discussions amid escalating trade tensions as the U.S. Treasury Secretary Scott Bessent is scheduled to meet a senior Chinese official.
The U.S. Treasury Department on Tuesday said that Bessent would travel to Switzerland on Thursday to meet with the senior Chinese officials.
While the department did not specify whom he would meet, China’s Commerce Ministry and state media confirmed the talks and named Vice Premier He Lifeng as Beijing’s representative.
According to the Chinese ministry, the decision to hold talks was made in response to global expectations, China’s own economic interests and calls from U.S. industry and consumers.
Nigeria’s fiscal position was on the hangers following the downtown in crude oil prices.
The country put it’s benchmark at $75 per barrel, but has been under severe threat as prices fell down to about $50/b.
But there is now hope that if the trade talks come out positive, crude oil prices may rise again.
Brent crude increased by around 1.76 per cent, 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 per cent , 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.
The meeting will mark the first senior-level contact since the trade conflict between the world’s two largest economies flared up in early April.
https://blueprint.ng/hope-as-oil-prices-rise-ahead-us-china-trade-talk/
