WTI Oil Reclaims Above \$60 as US-China Trade Talk Signals Ease Tensions

WTI oil maintains a firm tone, striving to sustain gains above the critical \$60 level (a psychological barrier and the 50% Fibonacci retracement of the \$64.70/\$55.14 decline).

Prices climbed around 4% on Thursday, fueled by renewed optimism as the US and China announced upcoming trade talks. The contract is on track for a weekly gain exceeding 7%, marking the largest weekly advance since late September 2024.

Easing fears of a potential escalation in the US-China trade conflict—two of the world’s largest oil consumers—have improved the demand outlook, partially offsetting concerns of oversupply after OPEC+ confirmed a third consecutive production increase starting June 1, totaling 960,000 barrels per day.

Thursday’s strong rally, which broke above the psychological \$60 level and tested \$61.05 (the 61.8% Fibonacci retracement), generated an initial bullish signal. However, the technical outlook on the daily chart remains mixed, lacking clearer signals.

A weekly close above \$60 would keep the short-term outlook tilted higher, with a break above \$61.05 needed to confirm a bullish scenario. For now, price action may remain subdued, awaiting further direction from the outcome of US-China trade discussions.

Res: 61.05; 61.79; 62.09; 62.44
Sup: 59.92; 58.98; 58.69; 57.40