West Texas Intermediate (WTI) crude oil is trading around $62.20 as investors await the release of the US Nonfarm Payrolls (NFP) data for May, scheduled at 12:30 GMT on Friday. The oil price is steady, supported by optimism over ongoing US-China trade talks.
The US labor market report is crucial because it will influence expectations about the Federal Reserve’s future interest rate decisions. If the data shows weaker job growth, traders may expect the Fed to be more cautious, which could boost oil prices.
US President Donald Trump posted on Truth.Social that a recent phone call with Chinese President Xi Jinping lasted about 90 minutes and ended positively. Both leaders agreed that trade negotiations would continue smoothly. China’s official news agency, Xinhua, confirmed the call and ongoing diplomatic talks between the two countries.
The easing of trade tensions between the US and China is good news for oil prices, as China is the world’s largest oil importer. This development raises hopes for stronger fuel demand in both countries.
Additional factors supporting oil prices include supply disruptions in Canada due to wildfires and ongoing geopolitical risks related to the Russia-Ukraine conflict and tensions in the Middle East.
However, some analysts warn that increased oil production from OPEC+ and other producers could limit price gains in the coming months.
In summary, WTI crude oil is consolidating near $62.20, buoyed by positive US-China trade signals and anticipation of the US jobs report, which will guide market expectations on monetary policy and oil demand.
