WTI attracts some buyers above $63.50 on optimism around US-China trade talks

• WTI price gains ground to near $63.80 in Wednesday’s Asian session.

• Optimism around US-China trade talks supports the WTI price. 

• US crude oil inventories unexpectedly declined in the week ended June 6, according to the API.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $63.80 during the Asian trading hours on Wednesday. The WTI price edges higher as traders digest the result of trade talks between the United States and China. The US May Consumer Price Index (CPI) inflation and the EIA Crude Oil stockpiles report will be the highlights later on Wednesday. 

Bloomberg reported early Wednesday that the US and China agreed to a preliminary deal on how to implement the consensus the two sides reached in Geneva. US negotiators stated that they “absolutely expect” that issues around shipments of rare earth minerals and magnets will be resolved with the framework implementation, even though the full details of their agreement weren’t immediately available. Analysts expect a trade deal between the world's two biggest economies could underpin the WTI price by boosting global economic growth and increasing oil demand.

The American Petroleum Institute (API) weekly report showed crude oil stockpiles in the US for the week ending June 6 declined by 370,000 barrels, compared to a fall of 3.3 million barrels in the previous week. The market consensus estimated that stocks would increase by 700,000 barrels.

On the other hand, Iran said it would soon make a counter-proposal for a nuclear deal in response to a US offer that Tehran deems "unacceptable," per Reuters. Any signs of easing US sanctions on Tehran should allow Iran to export more oil, which might cap the upside for the crude prices.