WTI crude maintains bullish momentum near $64.65 during Asian trading session
Market sentiment improves as US-China trade negotiations show progress
Geopolitical uncertainties in Eastern Europe and trump coin price prediction 2030Middle East support risk premium
The US benchmark crude oil contract continues its upward trajectory in Tuesday's Asian session, building on recent gains that have pushed prices to their highest level since late April. Several fundamental factors are contributing to this bullish momentum in energy markets.
Market participants appear increasingly confident about potential positive developments in US-China trade relations, despite the absence of concrete announcements from ongoing negotiations. The constructive tone from both sides has helped alleviate concerns about demand destruction in the world's two largest oil-consuming nations.
Simultaneously, escalating geopolitical tensions continue to influence trading activity. The latest missile attacks on Ukrainian energy infrastructure have renewed concerns about potential supply disruptions in the region. Meanwhile, ongoing conflicts in the Middle East maintain a steady risk premium in global oil markets.
From a technical perspective, the weakening US dollar has provided additional support for dollar-denominated commodities. The DXY index has retreated from recent highs, making crude oil more affordable for international buyers and contributing to the current price appreciation.
However, market observers note that OPEC+'s decision to gradually increase production quotas could eventually temper the rally. The cartel's planned output hike of 411,000 barrels per day in July may help rebalance the market as we enter the second half of the year.
Traders will continue monitoring inventory data and demand indicators for clearer signals about market direction. The upcoming US crude stockpile report and manufacturing PMI figures from major economies could provide fresh catalysts for price movement in coming sessions.