Oil Price Forecast: WTI Rises Above $64 on US-China Trade Optimism and Improved US Outlook

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Oil Price Forecast: WTI Rises Above $64 on US-China Trade Optimism and Improved US Outlook

West Texas Intermediate (WTI) crude oil extended its upward momentum on Tuesday, breaking above the $64.00 mark. The rally marks the fourth consecutive day of gains, fueled by improving sentiment around US-China trade talks and stronger domestic economic indicators.

US-China Trade Talks Drive Oil Demand Optimism

Ongoing negotiations between the United States and China in London have provided a positive backdrop for global energy markets. The two nations—representing the world’s largest economies—are critical to global oil demand and trade flows.

US President Donald Trump remarked on Monday that he is receiving “good reports” from the talks. Further optimism came from US Commerce Secretary Howard Lutnick, who noted that the discussions are “progressing well” and expected to continue throughout the day.

Also read: How US-China Relations Influence Oil Prices

US Business Sentiment Boosts Energy Demand Outlook

Adding fuel to the rally, the US NFIB Business Optimism Index for May showed notable improvement. A more confident business environment typically suggests higher industrial activity and increased energy demand, further supporting oil prices.

Explore: US Business Optimism Index Explained

Market Eyes API Oil Inventory Data

Investors are now turning their attention to the American Petroleum Institute (API) report, scheduled for release later on Tuesday. The data will offer insight into weekly US crude stockpile changes, a key short-term driver of oil price volatility.

Key Takeaways

• WTI crude oil trades above $64.00, extending its 4-day rally.
• US-China trade talks continue to support global oil demand sentiment.
• US business optimism boosts expectations of increased energy use.
• API oil inventory report expected to impact short-term price action.