- US–China trade negotiations progress, lifting risk sentiment and supporting Oil gains.
- The US Energy Information Administration (EIA) released a weekly stockpile report, showing a larger-than-expected reduction in Oil inventories.
- WTI prices rise above $65.00 as risk sentiment supports increasing demand for Oil.
West Texas Intermediate (WTI) crude oil is rallying on Wednesday, climbing more than 2% intraday as markets react positively to renewed momentum in US–China trade negotiations and a larger-than-expected drop in US crude inventories.
The move was sparked by comments from President Donald Trump, who stated on Truth Social, “Our deal with China is done, subject to final approval with President Xi and me.”
The announcement triggered a wave of optimism across financial markets, boosting risk appetite and supporting commodities like crude Oil, which are closely tied to global trade and industrial demand.
Adding to the bullish tone, the latest inventory data from the US Energy Information Administration (EIA) showed that crude Oil stockpiles declined by 3.644 million barrels for the week ending June 7.
This significantly exceeded expectations for a modest 0.1 million barrel increase and followed a prior 4.304 million barrel drawdown, reinforcing signs of tightening supply.
Together, the improving macro backdrop and fundamental support have reignited upside momentum in oil markets, with WTI now trading near $65.50, its highest levels since the beginning of April.
