Global oil prices advanced on Wednesday as concerns over supply disruptions and renewed hopes for improved trade relations between the United States and China boosted investor confidence.
Brent crude traded at $62.05 per barrel, up 1.1% from its previous close of $61.36, while West Texas Intermediate (WTI) gained 1.2% to $58.23 per barrel. The rise followed heightened geopolitical risks linked to the prolonged Russia-Ukraine conflict, which continues to unsettle global energy supply chains.
Investor optimism also grew on reports of potential trade discussions between the U.S. and China, the world’s two largest economies. Analysts say an agreement could stimulate global economic activity, thereby increasing energy demand.
However, political uncertainty in Washington clouded sentiment. U.S. President Donald Trump postponed a planned summit with Russian President Vladimir Putin after negotiations to secure a ceasefire in Ukraine stalled. Trump said he preferred not to hold a “wasted meeting,” emphasizing that discussions must yield tangible outcomes.
The White House’s decision followed a call between U.S. Secretary of State Marco Rubio and Russian Foreign Minister Sergey Lavrov, which officials described as “productive.” The Kremlin has reportedly resisted Trump’s proposal for a ceasefire that would lock in current frontlines in the ongoing war.
Meanwhile, Trump reaffirmed his intention to meet Chinese President Xi Jinping during the upcoming Asia-Pacific Economic Cooperation summit in South Korea, suggesting the two leaders could strike a “fair” trade deal — though he also hinted the talks might be postponed.
Market watchers believe successful negotiations could boost global trade flows, further supporting oil demand in the months ahead.
On the supply side, data from the American Petroleum Institute (API) showed U.S. crude inventories dropped by 2.98 million barrels last week, signaling strong demand. The Energy Information Administration (EIA) is expected to release its official inventory data later in the day.
