Oil prices are maintaining their gains as of early June 2025

Oil prices are maintaining their gains as of early June 2025, buoyed by renewed U.S.-China trade discussions and ongoing geopolitical tensions.

### Key Drivers Behind Oil's Recent Stability

* U.S.-China Trade Talks: A recent call between President Donald Trump and Chinese President Xi Jinping has rekindled hopes for easing trade tensions. Both leaders have agreed to resume negotiations, aiming to resolve disputes over tariffs and rare earth mineral supplies. This development has positively influenced market sentiment, with Brent crude trading around $65 per barrel and West Texas Intermediate (WTI) near $63, marking their first weekly gains since mid-May .

* OPEC+ Production Decisions: OPEC+ has decided to maintain its current production increase of 411,000 barrels per day for July, aligning with the hikes from the previous two months. This move has alleviated market concerns over a potential larger output boost. Brent crude climbed to $64.12 per barrel, and U.S. WTI reached $62.31 following the announcement .

* Geopolitical Tensions: Potential supply disruptions due to U.S. sanctions on Venezuela and the possibility of Israeli strikes on Iranian infrastructure are adding upward pressure on oil prices .

* Supply Concerns: Wildfires in Alberta, Canada, have disrupted approximately 7% of the country's oil production, contributing to the rise in oil prices. Brent crude climbed 0.19% to $64.75 per barrel amid these supply concerns .

In summary, oil prices are holding steady due to a combination of renewed trade negotiations between the U.S. and China, OPEC+'s measured approach to production increases, geopolitical tensions, and supply disruptions in Canada.