Oil prices have risen by 3%, with Brent crude nearing $63 and WTI approaching $60, buoyed by optimism around upcoming U.S.-China trade negotiations. U.S. Treasury Secretary Scott Bessent is set to meet China’s top economic official on May 10 in Switzerland to address the ongoing trade war that has been impacting global markets.
According to SEB analyst Ole Hvalbye, hopes for progress in the talks are providing support to the oil market. However, analysts are cautioning that volatility remains due to the tariff-driven risks. Jim Ritterbusch from Ritterbusch and Associates notes that the global risk premium of past years has now shifted to a “tariff premium,” driving fluctuations based on the latest headlines from the U.S. administration. – oilprice.com
