Oil prices rise, supported by US-China trade negotiations and falling inventories
Crude oil prices rose during trading on Wednesday, supported by positive developments in trade talks between the United States and China, as well as a sudden drop in US oil inventories.
Factors of the rise of oil
After yesterday's drop of WTI to below USD 65 per barrel, today it has rebounded to almost the level of USD 66.
This improvement came after the American Petroleum Institute data revealed an unexpected decrease in crude inventories last week by about 0.37 million barrels, contrary to analysts forecasts, which indicated an increase of 0.7 million barrels.
Positive news about the trade negotiations between Washington and Beijing also contributed to supporting prices, as officials from both sides agreed on a framework for resolving existing disputes, which is scheduled to be presented to US President Donald Trump for review.
The influence of pressure factors on oil
Despite the decline in fears related to the trade war, the market reaction remained conservative due to the uncertainty surrounding global economic growth and its effects on oil demand.
On the other hand, OPEC's plans to reduce production cuts continue to put pressure on prices, but some analysts believe that an increase in global demand may offset the rise in oil supply, contributing to price stability in the medium term.
Future forecasts
The trend of oil prices remains tied to the developments of trade negotiations between the United States and China, as well as global demand indicators and OPEC production decisions. Given these conflicting factors, experts predict limited volatility in the near term, with a bullish probability in the event of an improvement in economic growth indicators.
