{"id":21272,"date":"2025-05-02T05:06:58","date_gmt":"2025-05-02T05:06:58","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=21272"},"modified":"2025-05-02T05:06:58","modified_gmt":"2025-05-02T05:06:58","slug":"oil-rebounds-as-china-signals-trade-talks","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/oil-rebounds-as-china-signals-trade-talks\/","title":{"rendered":"Oil Rebounds as China Signals Trade Talks"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2025\/02\/oil4-1024x559.png\" alt=\"\" class=\"wp-image-17015\" \/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>WTI climbs to $59.74 as China evaluates US proposal for trade talks.<\/li>\n\n\n\n<li>OPEC+ weighs June output hikes while Trump warns of Iranian oil sanctions.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>Oil markets rallied on Friday as renewed hopes of a thaw in US-China trade tensions lifted sentiment, with West Texas Intermediate (WTI) crude rising 0.8% to settle at $59.74 a barrel. Brent crude followed suit, gaining 49 cents to reach $62.62. Both benchmarks extended gains made late Thursday, recovering from midweek losses sparked by OPEC+ supply concerns.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">House Republicans plan to raise more than $15 billion in revenue through increasing US oil, gas and coal lease sales, as well as other measures, to help pay for President Donald Trump\u2019s massive tax cut package <a href=\"https:\/\/t.co\/o2LQu57S9u\">https:\/\/t.co\/o2LQu57S9u<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1918113306788691994?ref_src=twsrc%5Etfw\">May 2, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The price action comes on the back of China\u2019s Commerce Ministry confirming that <a href=\"https:\/\/t.co\/MkliHxKNlO\">Beijing is \u201cevaluating\u201d a proposal from Washington<\/a> for tariff negotiations. This news helped ease investor anxiety following months of escalating protectionist rhetoric. As fears of a global demand slowdown receded temporarily, oil bulls found renewed momentum.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>Crude oil has staged a <strong>sharp recovery<\/strong> off the <strong>$56.38 low<\/strong>, reclaiming ground to close near <strong>$59.67<\/strong>. After a steep selloff from <strong>$60.13<\/strong>, price consolidated near the lower bound before reversing strongly. The <strong>moving averages (5, 10, 30)<\/strong> have now flipped into a <strong>bullish alignment<\/strong>, with price holding above all three lines and maintaining an upward trajectory.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image-1-1024x445.jpg\" alt=\"\" class=\"wp-image-21273\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: Oil claws back above $59 after a strong bounce from $56. Momentum slows near resistance, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>The <strong>MACD (12,26,9)<\/strong> 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 <strong>$59.85\u2013$60.13<\/strong> is the next key barrier to watch. If breached, this could open the door for a retest of <strong>$61.00<\/strong>.<\/p>\n\n\n\n<p>For now, <strong>momentum favours bulls<\/strong>, but consolidation may follow after such an aggressive rebound.<\/p>\n\n\n\n<p>In parallel, President Trump reignited cross-border tensions by threatening secondary sanctions on countries importing Iranian oil. This followed the breakdown of <a href=\"https:\/\/t.co\/fcDDFn7fSq\">US-Iran nuclear talks<\/a>, and a revived push to curtail Tehran\u2019s crude exports to zero \u2014 part of a wider \u201cmaximum pressure\u201d campaign that has historically buoyed prices.<\/p>\n\n\n\n<p>Still, the upside remains tempered. Reuters reported this week that Saudi Arabia is reluctant to extend current supply cuts, despite oil hovering below preferred price levels. <a href=\"https:\/\/t.co\/01gUSE3eYW\">Eight OPEC+ countries will meet on May 5<\/a> to finalise June\u2019s output plans, with some expected to advocate for a second consecutive hike. Meanwhile, non-OPEC production continues to rise, testing the group\u2019s ability to maintain market balance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Cautious Outlook <\/h2>\n\n\n\n<p>As China\u2019s trade position evolves and OPEC+ deliberates production targets, crude markets remain reactive to headlines. While the rebound has cleared short-term hurdles, further upside depends on clarity from both the White House and Riyadh. Traders should monitor $60.13 for confirmation of bullish continuation.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*1azgbap*_gcl_au*NjE5NTE3MjY4LjE3NDQ2MDA3NDI.*_ga*MTY4OTgwNTU5Mi4xNzM2NzQ2MTgy*_ga_J26NL1ZVX7*czE3NDQ5NDQ0NTYkbzEyMCRnMCR0MTc0NDk0NDQ1NiRqNjAkbDAkaDA.\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Optimism around trade negotiations and political tensions lift crude prices, but OPEC+ uncertainty keeps outlook cautious. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[66],"class_list":["post-21272","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-oil"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/21272","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\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=21272"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/21272\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=21272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=21272"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=21272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}