Oil prices rose on Wednesday, holding just above a four-year low, as investors focused on US-China trade talks and signs of declining US output.
Brent crude futures were up 44 cents a barrel, or 0.7%, at $62.59 a barrel by 0400 GMT, while US West Texas Intermediate crude futures were up 50 cents, or 0.9%, at $59.59 a barrel.
Both benchmarks have slumped to four-year lows recently after OPEC+ decided to accelerate output increases, stoking concerns about oversupply at a time when US tariffs have raised concerns about demand.
"News that the US and China will start trade talks later this week sent Brent crude higher, extending the oil rally," commodity strategists at ING said on Wednesday.
"While negotiations will help boost sentiment in the oil market, we need to see significant progress on lowering tariffs to improve the demand outlook," ING added.
Meanwhile, lower oil prices in recent weeks have prompted several U.S. energy companies including Diamondback (NASDAQ:FANG) Energy and Coterra Energy (NYSE:CTRA) to announce rig cuts, which analysts say will support prices over time by reducing production.
The latest announcements suggest production will be weaker in the coming months, said ANZ Bank senior commodity strategist Daniel Hynes. "We warned last month that falling prices and lower drilling activity were increasing the risk of a decline in U.S. oil production."
Crude stocks fell by 4.5 million barrels in the week to May 2, market sources said, citing figures from the American Petroleum Institute on Tuesday. [API/S]
U.S. government data on stocks is due at 10:30 a.m. ET (1430 GMT). Analysts polled by Reuters had forecast, on average, a decline of 800,000 barrels in U.S. crude stocks last week. [EIA/S]
Prices also found support from signs of improving demand. Consumers in China increased spending during May Day celebrations and as market participants returned from a five-day holiday.
In Europe, companies are expected to report a 0.4% increase in first-quarter profits, an improvement from the 1.7% decline analysts had expected a week ago.
The Federal Reserve is widely expected to leave U.S. interest rates unchanged on Wednesday as tariffs rattled the economic outlook.(Newsmaker23)
Source: Investing.com
Oil prices were steady throughout the day and week, with investors focused on the meeting between the US and Russian presidents on Friday night. West Texas Intermediate crude traded near $64 a barrel...
Oil prices climbed about 2% to a one-week high on Thursday after U.S. President Donald Trump warned of "severe consequences" if his talks with Russian President Vladimir Putin on Ukraine fail, and on ...
Oil prices rose Thursday as focus remained squarely on how an upcoming meeting between U.S. and Russian leaders will affect global supply. At 08:45 ET (12:45 GMT), Brent oil futures for October...
Oil prices were stable on Thursday as investors weighed the potential impact of Friday's U.S.-Russia summit on Ukraine on Russian crude flows, after U.S. President Donald Trump warned of "severe conse...
Oil steadied near a two-month low after the International Energy Agency said the market is on track for record oversupply next year. Brent traded below $66 a barrel, after closing at its lowest ...
The Nikkei 225 Index climbed 0.5% to above 42,800, while the broader Topix Index advanced 0.75% to 3,080 on Friday, rebounding from the prior session's losses as stronger-than-expected GDP data lifted sentiment. Japan's economy expanded 0.3% in...
Asian markets are expected to open mixed. Australia's S&P/ASX 200 is expected to start the day slightly lower, with futures tied to the benchmark at 8,838, compared to the index's last close of 8,873.8. Japan's Nikkei 225 is expected to open...
Gold is headed for a weekly loss, as traders scale back bets on a Federal Reserve interest rate cut next month following rising inflation. Gold bullion traded near $3,335 an ounce, after ending the previous session 0.6% lower following a report...
Australia will release its July monthly employment report on Thursday at 1:30 GMT, following the Reserve Bank of Australia (RBA) decision to trim...
European stocks closed sharply higher on Wednesday, their highest in two weeks as the outlook of lower interest rates in the United States and the...
Richmond Fed President Thomas Barkin believes that consumer spending behavior—now increasingly selective and inclined to "trade down"—can mitigate...
U.S. Treasury Secretary Scott Bessent said Wednesday that short-term interest rates should be 1.5 to 1.75 percentage points lower than current...