Oil prices have increased significantly, with Brent crude nearing $63 a barrel and West Texas Intermediate approaching $60. This rise follows the announcement of trade negotiations between the US and China, which has generated optimism regarding the easing of trade tensions. The discussions mark the first confirmed talks since the imposition of tariffs by President Trump, which had previously contributed to a decline in oil prices since January.

The Energy Information Administration has revised its forecast for US crude production down to 13.42 million barrels per day for the year, reflecting the impact of OPEC+ supply increases and declining shale output. Additionally, US crude stockpiles have decreased by 4.49 million barrels, indicating a tightening supply situation. These developments suggest potential upward pressure on oil prices, which could benefit companies in the sector.