(RTTNews) – Oil rose on Monday due to hopes sparked by US-China trade talks at the senior official level and with the nearing travel season boosting energy demand.
WTI crude oil for July delivery settled at $65.29 per barrel, up 71 cents, the highest since April 3.
Brent crude was last seen at $66.83, up 36 cents.
The much-awaited trade talks between US and China kicked off in London today to put an end to the tariff war which has already rattled the global economy.
This news aided in today’s trading as oil traders are hopeful of a positive outcome. If their assumptions turn out to be true, it could spur global oil demand in a large scale.
Additionally, crude oil had carry-over support from last Friday when a Baker Hughes report showed that the active US oil rigs for the week ending June 6 fell to a three-and-a-half year low.
Moreover, as the peak summer travel season is approaching, fuel consumption and the demand for oil is expected to go higher. This also helped to lift oil prices today.
On the geopolitical front, sidestepping the assurance to pursue peace talks with Ukraine, Russia launched intense drone and missile attacks on Ukraine. This has triggered concerns about further sanctions on Russian energy adding to demand for crude oil.
On the supply side, according to Morgan Stanley’s data, the recent oil output boost of OPEC+ is still yet to translate into any production surplus.
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