Oil prices traded higher during Asian trade on Thursday after falling 1.7% in the previous session, as investors weighed economic uncertainty surrounding upcoming United States-China trade talks amid signs of softening demand.
By 2:30 pm AEST (4:30 am GMT) Brent crude futures for July added $0.47 or 0.8% to US$61.59 per barrel, while U.S. West Texas Intermediate (WTI) crude for June added $0.55 or 1% to $58.62
“Despite the US and China announcing trade talks this weekend, Trump said he’s unwilling to pre-emptively lower tariffs on China to kickstart substantive negotiations,” ANZ analysts noted.
U.S. Treasury Secretary Scott Bessent is scheduled to meet China’s top economic official in Switzerland on 10 May to discuss the ongoing trade war. Bessent described the negotiations as a starting point rather than advanced discussions.
Meanwhile, The U.S. announced a ceasefire with Yemen’s Houthi rebels, who agreed to halt attacks on American vessels in the Red Sea - significantly lowering the risk of supply disruptions in the region.
On the data front, U.S. gasoline inventories decreased by 2 million barrel from the previous week, according to the Energy Information Administration greater than the expected 1.7 million barrel draw.
Additional supply pressure looms from the Organisation of the Petroleum Exporting Countries and its allies (OPEC+), which are set to increase output, potentially amplifying downward pressure on crude prices.
