Crude oil futures ended the week higher, buoyed by renewed optimism around U.S.-China trade talks and signs of tightening inventories.
West Texas Intermediate (WTI) settled near $59.91, marking a 2.78% weekly gain after rebounding sharply from multi-year lows earlier in the week. Bargain buying and improved sentiment supported prices despite strong macroeconomic and supply-driven headwinds.
Trade Talks and Risk Sentiment Offer Limited Relief
The upcoming May 10 trade negotiations between U.S. Treasury Secretary Scott Bessent and China’s top economic official have helped underpin crude prices. As the world’s top two oil consumers, any thaw in trade relations could provide much-needed demand support. Analysts flagged improved investor sentiment tied to hopes of reduced tariffs, though warnings persist that volatility from tariff headlines will continue to impact price action.
Additionally, a new U.S.-UK trade agreement, including industrial and pharmaceutical cooperation, further lifted overall market sentiment. However, analysts caution that trade-induced gains could be fleeting unless supported by broader economic improvement and clearer demand signals.
OPEC+ Supply Strategy Caps Gains
OPEC+ remains a key source of downside pressure. The group confirmed a second straight month of production hikes, adding 411,000 barrels per day in June. This lifts total output additions since April to nearly 1 million bpd.
https://www.theghanareport.com/oil-prices-hold-firm-on-trade-talk-optimism/
