Oil prices have stabilized following positive developments in US-China trade negotiations, with both nations reporting “substantial progress” after two days of discussions in Geneva. This optimism has buoyed market sentiment, suggesting a potential easing of trade tensions that have previously dampened global economic growth and oil demand.
As of early Monday trading, Brent crude futures rose by 0.47% to $64.21 per barrel, while US West Texas Intermediate (WTI) crude futures increased by 0.54% to $61.35 per barrel .
US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng characterized the talks as “productive” and “constructive,” respectively, with a joint statement anticipated later today . While specific details remain forthcoming, the positive tone has alleviated immediate concerns over escalating tariffs, which had reached as high as 145% on US imports and 125% on Chinese goods .
Analysts caution that while the current sentiment is favorable, the durability of this optimism depends on the concrete outcomes of the negotiations. Gao Jian, an analyst at Qisheng Futures Co., noted that unless substantial agreements are reached, particularly regarding tariff reductions, the potential for a sustained rebound in oil prices remains limited.
In the broader market, the easing of trade tensions has also led to gains in global equities and a strengthening of the US dollar, reflecting increased investor confidence .
As the world awaits further details from the US-China talks, oil markets are likely to remain sensitive to any new information that could influence the trajectory of global trade and economic growth.
