Oil prices rose on Wednesday due to optimism surrounding the upcoming U.S.-China trade talks and expectations of a decline in U.S. crude oil inventories. The international benchmark Brent crude oil price increased by about 1.76%, trading at $62.98 per barrel at 10:52 AM GMT, up from the previous day’s closing price of $61.89.
On the other hand, U.S. benchmark West Texas Intermediate (WTI) crude oil saw a slight decline of about 0.22%, settling at $58.84 per barrel, compared to the previous day’s close of $58.71.
Reports indicate that U.S. and Chinese officials will meet this week to discuss trade-related tariff issues, which has helped boost oil prices. U.S. Treasury Secretary Scott Bassett and U.S. Trade Representative Jamison Greer will meet their Chinese counterparts in Switzerland this week, marking the first steps in trade negotiations since President Donald Trump imposed comprehensive tariffs on China.
Bassett is scheduled to meet with an unnamed Chinese official on May 8, described by the U.S. Treasury as China’s “chief economic affairs representative.” Greer, according to the U.S. Trade Representative’s office, will meet with China’s Foreign Minister to discuss “trade issues.”
Bassett emphasized in a statement that economic security is national security, and President Donald J. Trump is leading the U.S. toward greater strength and prosperity both domestically and internationally.
Meanwhile, the U.S. Energy Information Administration (EIA) downgraded its 2025 forecast for Brent crude oil prices, citing a potential increase in global inventories that could pressure prices downward. In its Short-Term Energy Outlook (STEO) released Tuesday evening, the EIA revised its forecast for 2025 Brent crude oil prices to an average of $65.85 per barrel, down from the earlier projection of $67.87 per barrel. WTI crude prices were also revised downward, from $63.88 per barrel to $61.81 per barrel.
Last month, OPEC+ members announced plans to increase oil production, reinforcing market expectations of an oversupply and contributing to a rise in global oil inventories. These production increases are expected to put downward pressure on oil prices for the rest of the year. During the first four months of 2025, global inventories are estimated to have increased by 300,000 barrels per day, a stark contrast to the EIA’s January prediction of a reduction of over 200,000 barrels per day during the same period.
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