What’s Driving Crude Oil Prices Higher?
Arslan Butt • 1 min read
WTI crude oil prices rose higher on Wednesday over optimism in markets about the US and China resuming their discussions and working towards a trade deal. Continued tensions in the Middle East also exert upward pressure on oil prices, following the oil tanker attacks last week.
At the time of writing, WTI crude oil is trading at around $54.07 per barrel after gaining 3.8% in the previous session. After weeks of acrimony, President Trump and the Chinese government confirmed a meeting at the sidelines of the upcoming G20 summit next week. After talks broke down last month, this is the first sign of a positive step being undertaken by both sides as they try to work out their differences.
The improvement in the market sentiment as a result boosted demand for oil in world markets over expectations of a trade deal coming soon. Crude oil prices have also been supported lately over expectations of OPEC+ continuing with their supply cuts beyond June.
Meanwhile, tensions remain high in the Middle East region following the attack on oil tankers last week, which the US alleges was done by Iran. The US has deployed additional troops in the region as fears of a confrontation between US and Iran continue to rise.