Brent Crude Oil Price Exceeded $68 Per Barrel

For the first time in a month and a half.

The cost of August futures for Brent crude oil on the London-based ICE Futures exchange rose by 1.66% to $68.12 per barrel. The price of Brent crude exceeded the $68 per barrel mark for the first time since April 23.

Oil is becoming more expensive amid talks between the United States and China, the successful completion of which could support the global economy and increase demand for oil and other commodities, writes Reuters. U.S. President Donald Trump said the two sides have already reached an agreement to significantly reduce reciprocal tariffs. As part of the agreement, Washington will cut duties on Chinese duties by up to 55% and Beijing will cut duties on American duties by up to 10%. In addition, the US will once again allow Chinese students to study at US universities, Trump said.

According to analysts at Goldman Sachs, oil prices are recovering as fears of falling demand have eased due to trade talks between Washington and Beijing, while North American oil supplies are threatened by wildfires in Canada.

In addition, positive US inflation data was released on Wednesday. In May, the country's consumer price index rose by 2.4% year-on-year, while analysts expected 2.5%. The data reinforced the market's hope for a rate cut in the U.S., which could have a positive impact on oil demand.

The oil market could also be positively affected by news of a smaller-than-expected increase in Saudi Arabia's production in May, said Onyx Capital research group head Harry Chilinguirian. This could be the first sign that the lifting of OPEC+ production cuts may not lead to a significant increase in market supply.

A Reuters poll showed that May's increase in oil production by OPEC countries was limited. Iraq produced less than planned to offset previous overproduction, while Saudi Arabia and the United Arab Emirates increased output less than agreed.

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