Oil prices rose slightly amid US-China talks
10 June 2025 09:14
Oil prices rose on Tuesday as investors await the outcome of talks between the US and China, which could help ease trade tensions and improve fuel demand. This was reported by "Komersant Ukrainian" with reference to Reuters.
According to OilPrice.com, futures for Brent crude oil rose by 16 cents, or 0.24%, to $67.20 per barrel as of 09:04 Kyiv time. US West Texas Intermediate crude rose 8 cents, or 0.12%, to $65.37.
US vs China
Trade talks between the US and China were to continue for a second day in a row in London as officials try to ease tensions that have spread from tariffs to restrictions on rare earth metals, creating risks of disrupting global supply chains and slowing growth.
According to Goldman Sachs analysts, prices have recovered after demand concerns eased due to trade talks between Washington and Beijing and a positive US employment report. At the same time, there are risks to North American supplies due to wildfires in Canada.
US President Donald Trump said on Monday that negotiations with China are going well and he is receiving “only positive reports” from his team in London.
A trade deal between the US and China could support the global economic outlook and increase demand for commodities, including oil.
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US vs Iran
Meanwhile, Iran said it will soon submit a counter-proposal to the US on a nuclear deal in response to the US proposal, which Tehran considers “unacceptable,” while Trump made it clear that the parties still disagree on whether the country will be allowed to continue enriching uranium on Iranian territory.
Iran is the third largest producer among OPEC members, and any easing of US sanctions against Iran will allow it to export more oil, which will put pressure on global crude oil prices.
Forecast
A Reuters poll showed that OPEC oil production increased in May, although the growth was limited as Iraq produced less than planned to compensate for earlier overproduction, and Saudi Arabia and the United Arab Emirates increased production less than allowed.
OPEC, which produces about half of the world’s oil and includes OPEC members and allies such as Russia, is accelerating its plan to reverse the most recent level of production cuts.
“The prospect of further OPEC supply increases continues to hang over the market. The continued shift to a market-based strategy (in OPEC) will lead to a significant oversupply in the oil market in the second half of 2025 and will almost certainly cause oil prices to decline,”
– said Daniel Hines, Senior Commodity Strategist at ANZ.
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