According to Iraf, with investors’ attention fixed on Beijing for the outcome of the Xi Jinping–Donald Trump talks, oil prices increased on Thursday, May 14.
Market participants are hopeful that these discussions may offer a clearer outlook on the crisis in the Strait of Hormuz—a crisis that has pressured global oil supply amid escalating regional conflicts.
Price Movements
Reuters reports that Brent crude futures rose by $0.26, or 0.25%, reaching $105.89 per barrel.
U.S. West Texas Intermediate (WTI) crude also climbed $0.32, or 0.32%, to $101.34 per barrel.
This increase comes after both benchmarks experienced significant declines on Wednesday, as concerns over a potential U.S. interest rate hike—driven by rising fuel costs and inflationary pressures—pushed Brent futures down more than $2 and WTI over $1.
Market Outlook and Analyst Commentary
Trump visited Beijing’s Great Hall of the People early Thursday morning ahead of the official talks—a meeting observers believe could influence energy, trade, and regional security dynamics.
Analysts at ING noted in a briefing that “the oil market remains in a state of waiting” and cautioned that investors may have overestimated the likelihood of a positive outcome from the Washington–Beijing negotiations.
Meanwhile, the International Energy Agency (IEA) reported on Wednesday that global oil supply this year is expected to fall short of demand, due to severe disruptions in Middle Eastern production and unprecedented drawdowns in reserves.
The IEA’s latest report has revised its previous forecast of a “supply surplus,” further signaling potential market tightness.
