Oil rises amid global trade optimism and signs of imminent market shortage

Oil prices have been rising for the fourth consecutive day amid investor optimism over the extension of trade negotiations between the US and China. Signs of an impending supply shortage are exerting further upward pressure, Bloomberg reports.

According to the news agency, Brent crude climbed above $67 per barrel, and West Texas Intermediate surpassed $65. US Commerce Secretary Howard Lutnick said that talks in London with Beijing delegates had been “fruitful”. Discussions will continue Tuesday.

Oil prices have fallen this year due to concerns about global trade tensions that might lead to a slowdown in economic growth and reduced energy consumption. Progress in US-China negotiations may ease these worries and boost demand for risky assets.

Moreover, oil's pricing structure indicates a supply shortage in the near term. Brent's prompt spread is 81 cents per barrel and is in a bullish pattern, with the nearest contract trading at a premium to the next in line.