Oil Prices: USA–China Talks Shift the Market Situation
As of 8:15 AM Kyiv time, July futures for Brent crude on the London ICE Futures exchange are trading at $62.69 per barrel, which is $0.54 (0.87%) higher than the previous session's closing price.
On Tuesday, May 6, these contracts rose by $1.92 (3.2%), reaching $62.15 per barrel.
June futures for WTI crude on the New York Mercantile Exchange (NYMEX) have also increased by $0.59 (1%), reaching $59.68 per barrel.
In the previous session, these contracts rose by $1.96 (3.43%), to $59.09 per barrel.
On Wednesday, May 7, traders are focusing on U.S. energy stock data, which will be released by the Department of Energy at 5:30 PM Kyiv time. Estimates from the American Petroleum Institute (API), released the day before, showed a drop in U.S. oil inventories by 4.49 million barrels over the past week.
The fall in oil prices since the beginning of the year is forcing American shale producers to lower their production forecasts. Diamondback Energy warned this week that production from U.S. shale oil fields has likely peaked and will decline in the coming months due to low prices.
The market is also supported by news that the United States and China have agreed to begin trade negotiations, raising hopes of easing tensions between the two countries. U.S. Treasury Secretary Scott Bessent stated on Tuesday evening that he will meet with Chinese representatives in Switzerland later this week.
Source: Interfax-Ukraine.
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