Signs of US-China trade thaw lift Brent
The front-month ICE Brent contract has gained by $0.68/bbl on the day, to trade at $67.23/bbl at 09.00 GMT.
IMAGE: Getty Images
Upward pressure:
Hopes of a positive outcome from the ongoing US-China trade negotiations have given Brent’s price a leg up for yet another day.
Escalating US-China trade tensions had raised fears of an economic slowdown in two of the world’s largest economies. An economic slowdown can directly impact oil demand through reduced industrial activity, consumer spending and overall consumption. But recent signs of progress in the trade talks have allayed some of these concerns, thereby boosting oil prices.
The stalemate in US-Iran nuclear talks has provided additional support.
Iran produced around 3.43 million b/d of crude oil in April 2025, according to the International Energy Agency’s May oil report. If US sanctions are lifted, a return of these Iranian barrels to the global market could boost supply and weigh on prices. The two countries are still negotiating terms for a nuclear deal.
Downward pressure:
“… the prospect of further hikes in OPEC supply continue to hang over the [oil] market,” ANZ Bank’s senior commodity strategist, Daniel Hynes said in a note.
The group's shift to a “market-driven strategy,” focusing on seasonal demand and limited supply from non-OPEC producers could lead to a significant surplus in the second half of this year, Hynes added.
By Konica Bhatt
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