Oil prices rose slightly on hopes of improved relations between the US and China
28 April 08:02
Oil prices rose slightly during early trading on Monday, but remain under pressure from uncertainty over trade talks between the US and China, which clouds the outlook for global economic growth and fuel demand. Additional tension is created by the possibility of an increase in supply from OPEC, "Komersant Ukrainian" reports with reference to Reuters.
As of 06:29 Kyiv time, futures for Brent crude oil rose 22 cents to $67.09 per barrel, while US West Texas Intermediate (WTI) rose 24 cents to $63.26 per barrel. Both benchmark grades have shown a slight increase for the third consecutive session. Russian Urals oil, according to the Ministry of Finance, cost $60.84 per barrel on April 25.
“The lack of news is pushing oil prices moderately higher as traders took short positions in anticipation of a potential supply increase from OPEC at the May 5 meeting and a significant increase in US production,”
– said Michael McCarthy, CEO of online trading platform Moomoo Australia.
Some OPEC members are expected to propose that the group accelerate the increase in oil production for the second month in a row during the May 5 meeting.
Expectations of oversupply and concerns about the impact of tariffs on the global economy led to a drop in Brent and WTI prices last week by more than 1%.
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Trade wars
The market was shaken by conflicting signals from the US and China on progress in resolving the trade war that threatens to undermine global growth.
“Market participants will remain alert for a thaw in the US-China trade war as a buying opportunity,”
– said Vandana Hari, founder of Vanda Insights, an oil market analysis firm.
In the latest comment from Washington, U.S. Treasury Secretary Scott Bessent on Sunday did not confirm Trump’s claim that talks with China are ongoing. Earlier, Beijing denied that any talks were taking place.
Many participants in the Spring Meetings of the International Monetary Fund and the World Bank said that the Trump administration still does not have a unified position on the requirements for trading partners affected by its large-scale tariffs.
International context
Investors are also keeping an eye on the nuclear talks between Iran and the United States in Oman, which will continue this week. Iranian Foreign Minister Abbas Araghchi said he remains “extremely cautious” about the success of the talks.
In Iran, a powerful explosion in the largest port of Bandar Abbas killed at least 40 people and injured more than 1,200, state media reported on Sunday.
On Sunday, senior Trump administration officials called on Russia and Ukraine to make progress in peace talks after Trump’s personal meeting with Ukrainian President Volodymyr Zelenskyy at the Vatican a day earlier.
