By Atoyebi Nike
Global oil markets posted gains on Thursday after the United States and China announced plans to restart trade negotiations, renewing optimism among investors.
Brent crude rose by 48 cents, settling at $65.34 per barrel, while U.S. benchmark West Texas Intermediate (WTI) gained 52 cents to finish at $63.37 per barrel.
The price movement followed a phone call between U.S. President Donald Trump and Chinese President Xi Jinping — the first confirmed conversation since Trump resumed office in January. The leaders discussed trade exclusively during the 90-minute call, which reportedly took place at Trump’s request.
Trump disclosed on Truth Social that a high-level American delegation led by Treasury Secretary Scott Bessent would soon engage Chinese counterparts for renewed talks. Both leaders extended invitations to visit each other’s countries, signaling a potential easing of months-long economic friction.
Despite ongoing tensions, the move marks a shift from recent hardline rhetoric, including Trump’s earlier comment branding Xi as “extremely difficult” to strike a deal with.
Meanwhile, Saudi Arabia, the world’s top oil exporter, has slashed prices for its July shipments to Asia, marking nearly the lowest level in two months. The price revision follows an OPEC+ decision to increase output by 411,000 barrels per day next month.
Analysts suggest the Saudi move is a calculated step to pressure member states that have exceeded their output limits, as the group considers reversing up to 2.2 million barrels per day of agreed cuts by October.
In Canada, wildfires have disrupted nearly 7 percent of national crude production, further supporting prices even as the market braces for a potential surplus later in the year due to OPEC+ supply increases.
These developments collectively shape an unpredictable outlook for oil, with geopolitical moves and natural disruptions colliding in an already volatile energy landscape.
