Oil prices rose for the second consecutive day on Wednesday, thanks to optimism surrounding trade talks between the US, China, and India. Brent crude rose 1.6% to $62.28 a barrel, while WTI crude increased 1.7% to $58.19.
MUFG analyst Soojin Kim said, “News that the US and India are nearing a trade deal has strengthened expectations that India may gradually reduce its purchases of Russian oil.” US President Donald Trump announced that he met with Indian Prime Minister Narendra Modi and that Modi stated he would limit oil imports from Russia.
The US-India trade agreement is back on the agenda after long-stalled negotiations. The agreement is expected to reduce US tariffs on imports from India from 50% to 15-16%.
Also, US-China trade talks are being closely watched by the markets. Trump and Xi Jinping are scheduled to meet in South Korea next week.
However, Trump increased the uncertainty by saying the meeting might not happen. […] […] […] […] On the other hand, the postponement of the planned summit with Russia and the pressure from Western countries on Asian buyers to reduce their purchases of Russian oil have brought supply concerns back to the forefront.] […] […] […] […] […] In addition, news that US oil stocks have decreased and that the Energy Department plans to purchase 1 million barrels of crude oil for the Strategic Petroleum Reserve also supported prices.] […] […] […] […] […] […] […] […] The optimistic atmosphere is strengthening in global energy markets, but analysts say that depending on the outcome of trade talks price volatility may continue, it is stated.
