Oil costs edged up a bit at the start of the week in Asia trading hours; WTI traded around $61.45 a barrel. Positive signs are emerging for crude oil as a result of optimism about trade negotiations between the United States and China and the prospect of a stronger global economy.
Talks between the nations suggest fewer worries about new taxes on goods—or problems getting them. This week, the American and Chinese leaders will discuss trade specifics. With less global friction expected, oil prices have received a boost.
Traders are already aware that global crude prices are being negatively affected by new US sanctions on Russian crude oil giants Rosneft and Lukoil. Traders know that Russia is one of the largest producers of crude oil, and it is natural that this will increase their anxiety about the global crude oil shortage. Everything is not gloomy, though, because experts predict that additional supply from OPEC+ nations will soon boost the oil supply to combat this issue.
Traders are watching for the latest oil inventory numbers coming out on Tuesday from the API Weekly Crude Oil Stock. These figures should give a better picture of how much oil we have here in the States. Also, how talks between the US and China go this week could significantly move prices soon.
WTI remains stable for the time being, supported by rising optimism but vulnerable to a supply-side correction.
