WTI Crude Oil Price Rises Above $64.50 on Optimism for US-China Trade Talks

• WTI Crude Oil Prices Climb to $64.65 Amid Positive Market Sentiments.
• Optimism from US-China Trade Discussions and Global Tensions Bolster Oil Prices.
• OPEC and Allies Decide to Increase Oil Output in the Short Term.

During Tuesday’s Asian trading session, West Texas Intermediate (WTI), the benchmark for US crude oil, reached approximately $64.65. The price of WTI has ascended to near seven-week highs, driven by the anticipation of a US-China trade agreement and a declining US Dollar (USD). Market participants are keenly awaiting further developments from the ongoing trade talks in London, hoping for cues that could steer future trends.

There is a wave of optimism among investors regarding the US-China negotiations, despite the absence of major breakthroughs on the initial day. US President Donald Trump has expressed positive expectations, stating that the discussions “should go very well.” The prospect of a fruitful negotiation outcome is anticipated to bolster the global economic outlook and, consequently, enhance oil demand, potentially supporting higher WTI prices.

Additionally, ongoing geopolitical unrest, particularly in the Middle East and the persistent conflict between Russia and Ukraine, remains a supportive factor for crude oil demand. Notably, early Tuesday witnessed new aggressive actions as Kyiv and Odesa were targeted in a sizable Russian assault using ballistic missiles and drones, triggering defensive responses across these regions.

Conversely, recent decisions by the Organization of the Petroleum Exporting Countries (OPEC) and its allies could limit the upward potential for oil prices. The group has resolved to increase oil production in the short term, with a planned augmentation of 411,000 barrels per day starting in July, which could exert downward pressure on global oil prices.