Oil markets are firming, with West Texas Intermediate (WTI) crude climbing above $65 per barrel — its highest level since April.
Traders attribute the rise in prices to renewed US-China trade discussions taking place in London, which have raised hopes of a reduction in tensions between the world’s two largest economies. Positive signals from those talks can lift sentiment across commodity markets, including crude oil.
This uptick follows a period of weakness earlier in the year, when rising OPEC+ production and concerns about demand erosion from tariff threats pushed prices lower. Those factors contributed to a pronounced sell-off, but improving risk appetite has helped prices recover.
Market structure points to comparatively tight near-term supplies: front-month futures are trading at roughly a $1 premium to later-dated contracts, a small contango that reflects stronger demand or constrained availability in the near term. Still, analysts warn the current strength may partly reflect seasonal summer demand rather than a durable fundamentals-driven recovery.
In short, crude oil has regained ground as hopes for progress in trade talks boost sentiment and near-term supply indicators remain relatively tight, but observers remain cautious that underlying demand dynamics could reassert pressure if trade optimism fades or production increases persist.