West Texas Intermediate (WTI), the U.S. crude oil benchmark, edged higher during Asian trading on Wednesday, trading near $63.80 per barrel as markets digested fresh developments in U.S.–China trade talks. Investors are also awaiting key U.S. data releases later in the day, including the May Consumer Price Index (CPI) and the Energy Information Administration (EIA) crude oil inventory report.
According to a Bloomberg report early Wednesday, Washington and Beijing have reached a preliminary agreement on implementing the consensus formed in Geneva. While full details remain undisclosed, U.S. officials expressed confidence that longstanding issues, particularly around rare earth mineral and magnet shipments, will be resolved under the new framework. Analysts suggest that a successful trade accord between the world’s two largest economies could bolster global growth and, in turn, support crude oil demand.
Meanwhile, the American Petroleum Institute (API) reported a decline in U.S. crude oil inventories by 370,000 barrels for the week ending June 6, a more modest draw compared to the previous week’s 3.3 million-barrel drop. The market had anticipated a build of 700,000 barrels, making the surprise draw a supportive factor for oil prices.
However, potential gains in WTI may face resistance amid geopolitical developments in the Middle East. Iran is expected to submit a counter-proposal to the latest U.S. offer on reviving the nuclear deal, which Tehran has dismissed as “unacceptable,” according to Reuters. Any breakthrough in negotiations that leads to an easing of sanctions could pave the way for increased Iranian oil exports, potentially weighing on global oil prices.
