Oil prices rose by more than 2% on Thursday, buoyed by hopes of a breakthrough in impending trade negotiations between the United States and China, the world's two largest oil consumers.

Brent crude oil futures rose $1.43, or 2.3%, to $62.55 per barrel at 11:08am EDT (15:08 GMT). American West Texas Intermediate crude oil rose $1.50, or 2.6%, to $59.57

US Treasury Secretary Scott Bessent will meet with China's top economic official on May 10 in Switzerland for negotiations on the trade war that is disrupting the global economy. The optimism generated by these discussions supported the market, said Ole Hvalbye, an analyst at

These two countries are the world's two largest economies and the consequences of their trade conflict are likely to hold back the growth in crude consumption. Analysts warned that the recent volatility in the oil market, due to tariffs, was not over.

“The global risk premium that has caused oil prices to fluctuate over the past two years has been replaced by a tariff premium that will also fluctuate based on the latest Trump administration headlines,” Jim Ritterbusch, of the American energy consulting firm Ritterbusch and Associates, said in a note.

In another business context, US President Donald Trump announced a trade agreement between the United States and the United Kingdom that would create an aluminum and steel trading zone and secure the pharmaceutical supply chain. On the supply front, the Organization of Petroleum Exporting Countries and its allies, known as OPEC+, will increase oil production, which will weigh on prices. Analysts at Citi Research lowered their Brent price forecast to three months from $60 to $55 per barrel, but maintained their long-term forecast of $60 per barrel

A nuclear deal between the United States and Iran could push Brent prices down to $50 per barrel due to increased market supply, but if no deal was reached, prices could rise to over $70 per barrel, they added.