Global oil prices are showing steady growth on Wednesday for the second consecutive day, rising by approximately 2%. The main reasons for this movement are concerns about supply disruptions related to sanctions, as well as hopes for a trade agreement between the United States and China.
This is reported by Finway
Financial Indicators and Market Dynamics
As of 06:45 GMT, Brent crude oil futures rose by $1.24 (2.0%), reaching $62.56 per barrel. Meanwhile, West Texas Intermediate crude contracts increased by $1.20, or 2.1%, to $58.44 per barrel.
The day before, on Monday, October 20, oil prices hit a five-month low due to increased supply from producers and escalating trade disputes, raising concerns about declining demand. However, by Wednesday, the market began to recover due to new risks to oil supply.
Geopolitical Factors and Investor Expectations
The deepening uncertainty in the oil market is linked to the postponement of the summit between U.S. President Donald Trump and Russian President Vladimir Putin. Western governments are also pressuring Asian countries to reduce their purchases of Russian oil, which heightens concerns about supply disruptions.
“Despite the overall pessimistic sentiment caused by an oversupply of oil and weak demand, the risk of supply disruptions in hot spots like Russia, Venezuela, Colombia, and the Middle East remains and prevents oil prices from falling below the $60 mark,” said Mukesh Sahdev, founder and CEO of the consulting firm XAnalysts, which specializes in the energy market.
Additionally, investors are focused on the negotiations between the U.S. and China, whose representatives are set to meet this week in Malaysia. Further support for the market comes from reports of the U.S. intention to replenish its strategic oil reserves.
Market participants are also paying close attention to the upcoming meeting between Donald Trump and Chinese President Xi Jinping in South Korea, where agreements on a new trade deal are expected to be reached.