Crude oil prices began the week with gains, despite mixed signals from Washington regarding tariff negotiations with China.
As of the latest reports, Brent crude was trading at $67.03 per barrel, while West Texas Intermediate stood at $63.22 per barrel. The price movement followed comments by Treasury Secretary Scott Bessent, who said on Sunday that he was not involved in any talks with Chinese officials. This contradicted President Trump’s earlier statements, where he claimed ongoing tariff discussions with Chinese President Xi Jinping.
Bessent clarified that while he had met Chinese officials at the recent IMF and World Bank meetings, the discussions focused on financial stability and global economic issues, not tariffs. China has also denied any ongoing talks on the matter.
Despite these mixed messages, oil prices continued to rise. According to Michael McCarthy, chief market strategist at Moomoo Australia, the absence of major news was contributing to the price increase. Traders are positioning themselves ahead of potential increased supply from OPEC+ and a possible production boost in the U.S. after the May 5 meeting.
Meanwhile, reports suggest that the Trump administration is not in a hurry to finalize trade deals. No agreements were made during the recent IMF-World Bank Spring Meetings, indicating prolonged uncertainty around tariffs, which could continue to affect oil prices.
On the physical oil market front, ING analysts noted signs of tightening, which could further support prices. They highlighted strengthening timespreads as an indication of tighter supply in the immediate market.
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