WTI trades below $64.00, upside appears due to easing US-China trade tensions
WTI price may regain ground as Oil demand unmounts tariff-related pressure amid easing US-China trade-war tensions.
The stronger US jobs data eased concerns about an economic slowdown, supporting the Oil demand.
Citigroup expects that the Fed will implement 25 basis point rate cuts in September, October, and December.
West Texas Intermediate (WTI) Oil price halts its two-day winning streak, trading around $63.90 per barrel during the European hours on Monday. However, the crude prices gained ground as global Oil demand recovered from tariff-related pressure amid easing trade-war tensions between the United States (US) and China.
US President Donald Trump said that he had a one and a half hours phone call with Chinese President Xi Jinping on Thursday, which resulted in a very positive conclusion for both countries. From the Trump administration, Secretary of the Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, and Trade Representative Jamieson Greer, are scheduled to meet with their Chinese counterparts in London on Monday.
On Friday, US Nonfarm Payrolls (NFP) posted 139,000 new jobs added new jobs in non-agricultural businesses in May, higher than the market consensus of 130,000. Moreover, the Unemployment Rate remained steady at 4.2% and the Average Hourly Earnings remained unchanged at 3.9%, both readings came in stronger than the market expectation.
The stronger-than-expected United States (US) labor market data for May indicated underlying resilience in the job market. These figures eased concerns about an economic slowdown and supported the Oil demand.
Additionally, Citigroup, on Monday, predicted the Federal Reserve (Fed) to deliver a 25 basis point rate cut each in September, October, and December. The firm also expects the central bank to cut quarter basis point each in January and March 2026. This dovish outlook on the Fed could provide support for the Oil prices, as lower interest rates may improve economic activities in the US, the world’s largest Oil consumer.
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