WTI crude oil on Thursday, following a general reversal of risk sentiment caused by optimistic statements by the Chinese Commerce Secretary, halted its gradual downward trend in Asia and traded at higher prices.
Recent optimistic remarks by the Chinese Commerce Minister led to increased demand for high-yielding assets such as oil. The Chinese Commerce Secretary has stated that China wants to resolve trade issues with the US, and that China will refrain from retaliatory measures against the new US tariffs.
Oil also gained support due to a 10 million barrels’ decline in US oil reserves.
The market is expecting the release of US GDP in the second quarter. If these data are weaker than projected, they could raise concerns about the US recession and affect investors’ sentiment.