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- The Oil price is targeting further gains above $60.00, fueled by optimism surrounding a potential easing of US-China trade tensions.
- High-level trade negotiations between the United States and China are scheduled to take place this week.
- OPEC+ has indicated a commitment to accelerating oil production increases.
West Texas Intermediate (WTI) futures, trading on the NYMEX exchange, are poised to extend their two-day upward trajectory, aiming to breach the significant resistance level of $60.00 during Wednesday’s European trading session. The near-term outlook for crude oil prices has brightened considerably, driven by growing expectations of a de-escalation in the protracted trade dispute between the United States and China. This positive sentiment is contributing to a more bullish outlook for energy markets.
On Tuesday, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer officially announced their intention to meet with their Chinese counterparts this week in Switzerland for crucial trade and economic discussions. These talks are viewed as a critical step towards potentially resolving some of the existing trade barriers. Market analysts are closely watching for any signs of progress that could further bolster oil prices.
Bessent conveyed that the primary focus of the discussions would be on de-escalating the existing tariff war, acknowledging that the elevated duties imposed by both countries are not viable in the long term. “My sense is that this will be about de-escalation, not about the big trade deal,” Bessent said, according to CNBC. This suggests a pragmatic approach aimed at finding common ground and reducing trade friction, even if a comprehensive trade agreement remains elusive in the immediate future. Furthermore, recent economic data releases from both the US and China have indicated a potential slowdown in economic growth, adding further impetus to the need for a resolution to the trade dispute. The outcome of these discussions is expected to have a significant impact on global financial markets, including the energy sector.
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