Oil Prices Rise 2% amid Optimism over US Trade Talks With China, India

Oil prices climbed for a second consecutive day on Wednesday, gaining nearly 2%, supported by growing optimism over potential breakthroughs in trade negotiations between the United States, China, and India.

Brent crude futures rose $1.19, or 1.9%, to $62.51 per barrel, while U.S. West Texas Intermediate (WTI) crude increased $1.24, or 2.2%, to $58.48 per barrel.

Latest Oil Prices: 

WTI Crude $58.54 +1.30 +2.27%

Brent Crude $62.56 +1.24 +2.02%

Murban Crude $64.54 +1.33 +2.10%

Louisiana Light $60.44 +0.04 +0.07%

Bonny Light $78.62 -2.30 -2.84%

Opec Basket $62.04 +0.30 +0.49%

Mars US $71.01 -0.96 -1.33%

Gasoline $1.863 +0.037 +2.05%

Natural Gas • 3.439 -0.035 -1.01%

The rally follows reports suggesting that the U.S. and India are nearing a long-awaited trade deal that could gradually reduce New Delhi’s imports of Russian oil, potentially boosting demand for alternative crude sources.

"Oil prices climbed after reports indicated that the U.S. and India are close to reaching a trade agreement that may allow India to scale back its imports of Russian oil, potentially increasing demand for other grades," said Sojin Kim, an analyst at MUFG.

In comments made Tuesday, U.S. President Donald Trump said he had spoken with Indian Prime Minister Narendra Modi, who assured him that India would begin reducing its oil purchases from Russia.

Further fueling sentiment, Indian business daily Mint reported Wednesday that the two countries are finalizing a deal that would lower U.S. tariffs on Indian imports from 50% to around 15-16%, potentially paving the way for broader economic cooperation.

Market participants are also closely watching developments in U.S.-China trade relations, with officials from both sides set to meet this week in Malaysia.

The stakes are high, as China remains the world's largest oil importer, and any signs of industrial recovery in the country tend to lift global crude demand. Meanwhile, the U.S. continues to be one of the top oil producers, meaning that trade dynamics between the two powers heavily influence market sentiment.