{"id":18339,"date":"2025-05-02T06:20:08","date_gmt":"2025-05-02T06:20:08","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=18339"},"modified":"2025-05-02T06:20:08","modified_gmt":"2025-05-02T06:20:08","slug":"oil-prices-rebound-as-china-opens-door-to-trade-talks","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/oil-prices-rebound-as-china-opens-door-to-trade-talks\/","title":{"rendered":"Oil Prices Rebound As China Opens Door to Trade Talks"},"content":{"rendered":"\n

Oil prices climbed on Friday, buoyed by renewed optimism surrounding US-China relations. West Texas Intermediate (WTI) crude advanced by 0.8%, closing at $59.74 per barrel, while Brent crude also moved higher, adding 49 cents to finish at $62.62. Both benchmarks continued their upward movement from late Thursday, erasing losses sustained earlier in the week due to OPEC+ supply-related uncertainties.<\/p>\n\n\n\n

The rebound followed confirmation from China\u2019s Commerce Ministry that it is \u201creviewing\u201d a US proposal to begin tariff discussions.<\/a> This development helped ease market nerves after prolonged protectionist tensions, giving traders hope that demand concerns may reduce in the near term and supporting bullish sentiment in the oil space.<\/p>\n\n\n\n

Technical Analysis<\/h2>\n\n\n\n

Crude oil has staged a sharp recovery off the $56.38 low, closing near $59.67. After declining sharply from $60.13, the price stabilised near the lower range before reversing. The moving averages (5, 10, 30) have now flipped into a bullish alignment, with price holding above all three lines and maintaining an upward trajectory.<\/p>\n\n\n\n

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Oil claws back above $59 after a strong bounce from $56. Momentum slows near resistance, as seen on the VT Markets app.<\/figcaption><\/figure>\n\n\n\n

The MACD (12,26,9) confirms this bullish momentum with a clean crossover and rising green histogram bars, though the slope is beginning to flatten \u2013 hinting at short-term exhaustion. Resistance near $59.85\u2013$60.13 is the next key barrier to watch. If breached, this could open the door for a retest of $61.00.<\/p>\n\n\n\n

For now, momentum favours bulls, but consolidation may follow after such an aggressive rebound.<\/p>\n\n\n\n

US – Iran Fallout<\/h2>\n\n\n\n

Meanwhile, President Trump stoked fresh geopolitical concerns by warning of possible secondary sanctions against nations continuing to purchase oil from Iran. These comments came after US-Iran nuclear negotiations collapsed, prompting Washington to double down on efforts to halt Iran\u2019s oil exports entirely, a recurring factor that has tended to support higher prices in the past.<\/p>\n\n\n\n

Future Output Plan From OPEC+<\/h2>\n\n\n\n

Despite this, gains may be capped. Reports from Reuters suggest Saudi Arabia is hesitant to maintain current output cuts, even as oil remains below its favoured price range. A key OPEC+ meeting<\/a> involving eight member countries is scheduled for 5 May, where plans for June output will be finalised. Some participants are reportedly pushing for a second straight production increase. In the meantime, rising output from non-OPEC nations continues to pressure the group\u2019s efforts to manage global supply.<\/p>\n\n\n\n

As Beijing\u2019s trade stance evolves and OPEC+ debates its next move, oil markets are expected to remain highly sensitive to breaking news. While the rebound has cleared short-term hurdles, any further rally depends on clarity from the US and Saudi leadership. For now, traders should closely watch the $60.13 level as a key indicator of continued bullish momentum.<\/p>\n\n\n\n

Create your live VT Markets account<\/a><\/strong> and start trading now.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Oil prices climbed on Friday, buoyed by renewed optimism surrounding US-China relations. West Texas Intermediate (WTI) crude advanced by 0.8%, closing at $59.74 per barrel, while Brent crude also moved higher, adding 49 cents to finish at $62.62. Both benchmarks continued their upward movement from late Thursday, erasing losses sustained earlier in the week due Continue Reading<\/a><\/p>\n","protected":false},"author":92,"featured_media":18340,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[],"class_list":["post-18339","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/18339","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=18339"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/18339\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/18340"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=18339"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=18339"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=18339"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}