Lagos — Crude oil prices were recording some volatility and rebounded to a certain extent, supported by optimism ahead of U.S.-China trade talks.
The announcement that U.S. Treasury Secretary Scott Bessent will meet with China’s top economic official in Switzerland has improved market sentiment, as participants anticipate a possible easing in trade tensions between the world’s two largest oil consumers.
Although U.S. President Donald Trump emphasized that the talks remain at an early stage and reiterated his firm position on tariffs, positive developments could support crude prices further.
Despite the rebound, gains in crude prices remain limited due to persistent demand-side concerns. The Federal Reserve’s decision to hold interest rates steady while pointing to rising economic uncertainties has added to a cautious outlook.
Meanwhile, an increase in U.S. gasoline inventories has raised concerns over soft consumption heading into the summer driving season.
Additionally, upcoming increases in production from OPEC and its partners are expected to weigh on the market, creating headwinds for any sustained price appreciation.
*Osama Al Saifi, Managing Director for MENA at Traze
