WATCH THE VIDEO HERE crude oil prices were up by around 3 per cent on Thursday following a breakthrough in looming trade talks between the US and China, the world’s two largest oil consumers. Brent crude futures gained $1.72 or 2.8 per cent to trade at $62.84 a barrel and the US West Texas Intermediate (WTI) crude futures rose by $1.84 or 3.2 per cent to finish at $59.91 per barrel. The US Treasury Secretary, Scott Bessent, will meet with China’s top economic official in Switzerland on May 10 for negotiations over a trade war disrupting the global economy. Optimism around those talks was providing support to the market just as President Donald Trump on Thursday unveiled the broad outline of a trade agreement with the United Kingdom. The deal is the first by the US with a country whose imports were subject to new tariffs imposed by Trump in early April. The trade deal leaves in place a 10 per cent tariff on goods imported from the UK while Britain agreed to lower its tariffs to 1.8 per cent from 5.1 per cent and provide greater access to US goods. He said that the deal includes “billions of dollars of increased market access for American exports,” and that the UK will “reduce or eliminate numerous nontariff barriers that unfairly discriminated against American products.” On the supply front, the Organisation of the Petroleum Exporting Countries and its allies in OPEC+ will increase its oil output, pressuring prices. According to Reuters, OPEC oil output edged lower in April despite a scheduled output hike taking effect, led by a cut in Venezuelan supply on renewed US attempts to curb the flows and smaller drops in Iraq and Libya. Market analysts warned that a US-Iran nuclear deal could drive Brent prices down toward $50 per barrel on increased global supply, but without a deal prices could rise to over $70. US sanctions on two small Chinese refiners for buying Iranian oil have created difficulties receiving crude and led them to sell product under other names. This is evidence of the disruption that the US stepped-up pressure is inflicting on Iran’s biggest oil buyer. Five independent refineries in the Shandong province stopped buying Iranian crude in April for fear of being next on the list of sanctions.
Crude Oil Prices Soar 3% Ahead of US-China Trade Talks
