Oil prices saw an increase on May 9, 2025, driven by optimism over U.S.-China trade negotiations and expectations of tighter global supply. Brent crude rose by 0.37% to $63.07 per barrel, while U.S. West Texas Intermediate increased by 0.35% to $60.12 per barrel.
The market's positive sentiment is fueled by an upcoming meeting in Switzerland between U.S. Treasury Secretary Scott Bessent and China's Vice Premier He Lifeng, aimed at resolving ongoing trade disputes. Analysts suggest that meaningful progress in these talks could further boost oil prices by $2 to $3 per barrel.
On the supply side, OPEC+ plans to increase oil output, but disruptions in Libya, Venezuela, and Iraq have slightly reduced April production. Additionally, stricter U.S. sanctions on Iran have complicated oil procurement for Chinese refiners, contributing to concerns over global supply constraints.
The recent rise in oil prices reflects the market's responsiveness to both geopolitical developments and supply dynamics. While positive trade negotiations offer hope for increased demand, ongoing production challenges highlight the fragility of global supply chains. Stakeholders should monitor these factors closely, as they continue to shape the trajectory of oil prices in the near term.