Crude oil prices advanced for the second consecutive session on Wednesday, supported by supply concerns tied to global sanctions and renewed optimism surrounding U.S.-China trade negotiations.
Brent crude futures rose 2.0% to $62.56 per barrel, while U.S. West Texas Intermediate (WTI) gained 2.1% to $58.44 as traders reassessed geopolitical risks and the impact of upcoming diplomatic talks.
The gains follow a volatile start to the week that saw oil fall to a five-month low before rebounding sharply on renewed supply-side tension.
Market sentiment shifted after reports of growing disruptions in oil-producing regions, including Russia, Venezuela, and the Middle East, triggered a new round of buying interest.
Western pressure on Asian buyers to limit Russian crude purchases and ongoing tensions involving Venezuela’s oil shipments increased fears of potential supply cuts.
Energy market analysts noted that despite a lingering supply glut and subdued demand, crude prices remain sensitive to geopolitical developments.
Industry expert Mukesh Sahdev, Chief Executive of XAnalysts, said the persistence of regional instability is preventing oil from sliding below the key $60 per barrel threshold.
Additional price support came from the U.S. Department of Energy’s decision to acquire 1 million barrels of crude oil for its Strategic Petroleum Reserve (SPR).
The department’s plan to restock its reserves, after previous drawdowns during price shocks, provided a near-term boost to demand expectations.
Analysts at ANZ Research said the move reflects Washington’s effort to take advantage of relatively moderate prices while reinforcing national energy security.
Market participants also attributed Wednesday’s rally to a wave of short covering following earlier declines across multiple asset classes.
Analysts observed that traders who had previously bet against crude prices were closing positions as global risk appetite improved.
Tony Sycamore, a market analyst at IG Australia, said position adjustments across commodities and regional equities contributed to the recovery in oil futures.
Investors are closely monitoring developments in the U.S.-China trade dialogue, with officials from both countries scheduled to meet this week in Malaysia.
President Donald Trump signaled optimism about striking a “fair trade deal” with Chinese President Xi Jinping, though uncertainty remains over the timing and outcome of potential talks. Any progress in the negotiations is expected to bolster expectations for improved global demand in the energy sector.
Preliminary figures from the American Petroleum Institute (API) showed declines in U.S. crude, gasoline, and distillate inventories, further underpinning market strength. The data suggested that refiners have continued drawing from stockpiles amid steady domestic demand.
Despite the week’s gains, analysts caution that the market remains volatile, with the balance between oversupply and geopolitical disruption still fragile. Persistent production growth among key exporters and uncertain global consumption trends could temper further upside momentum.
Crude’s rebound underscores the market’s responsiveness to policy and diplomatic developments after months of subdued performance.
Traders are expected to watch for updates on the U.S.-China trade discussions and possible changes in sanctions enforcement as key short-term drivers.
At the same time, renewed efforts by the U.S. to rebuild its strategic reserves and short-term supply risks in politically tense regions may continue to provide price stability around current levels.