The Oil price remains supported amid optimism that trade negotiations between the US and China will go smooth in the future.
De-escalating US-China trade tensions is a favorable scenario for the Oil price.
Investors await the US NFP data for fresh cues on the Fed’s interest rate outlook.
West Texas Intermediate (WTI), futures on NYMEX, trades sideways around $62.20 during European trading hours on Friday. The Oil price consolidates as investors await the United States (US) Nonfarm Payrolls (NFP) data for May, which will be published at 12:30 GMT.
Investors will pay close attention to the US official employment data as it will influence market speculation for the Federal Reserve (Fed) monetary policy outlook. Signs of cooling labor demand would force traders to raise Fed dovish bets, a scenario that will be favorable for the Oil price.
The black gold remains well-supported as the comments from US President Donald Trump in a post on Truth.Social have indicated that trade negotiations with China will be smooth in the future. “The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both countries.” Trump wrote.
Meanwhile, Beijing has also confirmed that US President Trump and Chinese President Xi Jinping held a phone call on Trump's request to engage in discussions and reflect ongoing diplomatic communication amidst tensions, Xinhua news agency reported.
De-escalating trade tensions between China and the US is favorable for the Oil price, given that China is the largest importer of Oil in the world.
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
