- WTI price gains momentum to around $63.25 in Wednesday’s early Asian session.
- The US and China slash tariff rates by 115%, supporting the WTI price.
- Crude oil stockpiles in the US rose by 4.287 million barrels last week, according to the API.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $63.25 during the Asian trading hours on Wednesday. The WTI price extends its upside amid easing trade tensions between the United States (US) and China, which prompt traders to dial back odds of a recession.
The US and China agreed over the weekend in Switzerland to slash tariff rates by 115%. US President Donald Trump agreed to cut extra tariffs imposed on Chinese imports in April this year to 30% from 145%, and Chinese duties on US imports will be reduced to 10% from 125%. The lower tariff rate is effective for 90 days. A temporary cut in US-China tariffs, the world’s two largest petroleum consumers, could boost the WTI price in the near term.
The American Petroleum Institute (API) weekly report showed crude oil stockpiles in the US for the week ending May 9 climbed by 4.287 million barrels, compared to a fall of 4.49 million barrels in the previous week. The market consensus estimated that stocks would drop by 2.4 million barrels.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) are set to boost oil exports in May and June, which might cap the upside for the black gold. OPEC has raised oil output by more than previously expected since April, with its May output likely to increase by 411,000 barrels per day.
