Oil rises 4% amid signs of increasing demand in Europe and China

USOIL 

Oil is trading below the resistance level at $60.40, and this zone is likely to limit the pace of the upward movement during today’s trading.

Crude oil prices saw a slight increase today after a series of declines that had pushed them to their lowest levels in four years. Brent crude rose by 0.82% to $62.66 per barrel, while West Texas Intermediate (WTI) climbed by 0.9% to $59.67 per barrel.

This uptick is supported by several influential market factors:

Investor optimism regarding U.S.-China trade talks: The announcement of the resumption of negotiations helped boost positive sentiment in the markets, thereby supporting oil prices.

Signs of declining U.S. production: U.S. energy companies, such as Diamondback Energy and Coterra Energy, announced plans to scale back drilling activities due to low prices, which could reduce supply in the near future.

Decline in U.S. crude oil inventories: Data from the American Petroleum Institute (API) showed a 4.5 million barrel drop in inventories, contributing to the price support.

Despite this recovery, challenges remain—particularly the decision by OPEC+ to increase production by 411,000 barrels per day in June, which raises concerns about a potential oversupply amid uncertain global demand. Additionally, financial institutions such as Goldman Sachs and Barclays have lowered their oil price forecasts for 2025 and 2026, reflecting a cautious outlook on the market.

You can now benefit from LDN company’s services through the LDN Global Markets trading platform.