FX.co ★ Oil Rises to 2-Month High on US-China Trade Talks

WTI crude oil futures reached $65 per barrel on Monday, marking the highest level in two months. This increase is attributed to positive developments in US-China trade negotiations and the anticipated rise in seasonal demand. Meetings between US and Chinese officials are currently underway in London after a recent conversation between Presidents Trump and Xi, fueling hopes that tariff-related tensions might diminish, thereby bolstering global oil demand. Additionally, the onset of the peak summer travel season is expected to further drive fuel consumption, lending support to prices. Geopolitical factors have compounded upward pressure, as Russia commenced substantial drone and missile attacks on Kyiv following Ukrainian strikes on Russian air bases, amplifying the risk of prolonged sanctions on Russian energy. On the supply front, Saudi Arabia is advocating for a notable increase in OPEC+ production, aiming for a hike of at least 411,000 barrels per day in August, with the possibility of further increases in September.