Oil prices rise nearly 3% on hopes of breakthrough in US-China trade talks

Pumping gas for vehicles at a gas station in Cairo, Egypt. Illustration photo: AFP/TTXVN

At the end of this session, in the London market (UK), the price of North Sea Brent crude oil for June 2025 delivery increased by 1.72 USD, equivalent to 2.8%, to 62.84 USD/barrel. The price of US light sweet crude oil (WTI) increased by 1.84 USD, equivalent to 3.2%, to 59.91 USD/barrel.

US Treasury Secretary Scott Bessent will meet China’s top economic official in Switzerland on May 10 for talks on the trade war that is roiling the global economy. Optimism surrounding the talks is supporting oil prices, according to Ole Hvalbye of SEB bank.

However, experts warn that the volatility caused by trade tensions in the oil market is not over yet. “The global risk that has caused oil prices to fluctuate wildly over the past few years has now been replaced by tariffs, which will continue to fluctuate based on news from the Trump administration,” said Jim Ritterbusch of energy consultancy Ritterbusch and Associates.

In other trade developments, US President Donald Trump and UK Prime Minister Keir Starmer announced a “groundbreaking deal” on trade, which will keep the 10% tariff on goods imported from the UK, while the UK will lower tariffs from 5.1% to 1.8% and expand access for US goods.

On the supply side, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, are expected to increase production, putting pressure on oil prices. However, according to a Reuters survey, OPEC oil production in April 2025 decreased slightly despite the implementation of the production increase plan. The main reason is the re-imposition of US sanctions, causing a decrease in supply from Venezuela, in addition to a slight decrease in production from Iraq and Libya.

 

Citi Research has cut its three-month Brent price forecast to $55 a barrel from $60, but kept its annual average forecast at $60. Citi believes that if the US and Iran reach a nuclear deal, Brent could fall to $50 a barrel due to increased supply. Conversely, if no deal is reached, oil prices could exceed $70 a barrel.

In addition, new US sanctions targeting two small Chinese refineries for buying oil from Iran have made it difficult for them to receive cargoes and forced them to sell products under other names – a clear demonstration of the impact that US pressure is having on Iran’s biggest oil customer.

In another renewable energy development, Orsted Group said it would abandon a large-scale offshore wind project in the UK.

According to VNA

Source: https://doanhnghiepvn.vn/quoc-te/gia-dau-tang-gan-3-nho-ky-vong-dot-pha-trong-dam-phan-thuong-mai-my-trung/20250509101130090