Oil prices rebound after signs of China-US trade talks

Oil prices rose in today’s trading, supported by Chinese statements that opened the door to the possibility of resuming talks with the US, boosting hopes for a de-escalation in the escalating trade war between the world’s two largest economies.

Brent crude futures rose 40 cents, or 0.6%, to $62.53 a barrel, while US West Texas Intermediate (WTI) crude futures rose about 0.7% to $59.66 a barrel.

The Chinese Ministry of Commerce reported today that the United States has recently taken steps to open channels of dialogue with Beijing, according to Reuters.

Oil prices have fallen significantly in recent weeks amid concerns that an escalating trade war could push the global economy into recession, which could weaken global demand for oil, especially as OPEC+ prepares to increase production. Prices also received support from US President Donald Trump’s threat to impose secondary sanctions on buyers of Iranian oil, which raised concerns about a potential decline in global crude supplies, according to analysts at ANZ Bank in a research note.