Oil prices climbed for a second straight session on Wednesday, supported by renewed concerns over global supply disruptions and cautious optimism surrounding potential progress in US-China trade discussions.
Brent crude futures rose 94 cents, or 1.5%, to $62.26 a barrel, while US West Texas Intermediate (WTI) crude gained 92 cents, or 1.6%, to $58.16. The advance followed a rebound from a five-month low earlier in the week, as market sentiment improved after a series of declines driven by weak demand outlooks and rising output.
Analysts said the latest rally reflected a combination of supply-side risks and strategic buying by the United States. The Department of Energy on Tuesday confirmed plans to purchase one million barrels of crude oil to help replenish the Strategic Petroleum Reserve (SPR), taking advantage of the recent dip in prices. The move is seen as part of Washington’s broader effort to strengthen energy security amid fluctuating global markets.
“The SPR purchase provided a psychological boost to traders who have been worried about oversupply and slowing global demand,” said one commodities analyst in London. “It signals that the US government is willing to step in when prices fall too far, which can stabilize the market in the short term.”
Oil prices have been under pressure in recent weeks due to rising production from key suppliers, including the United States and OPEC members, coupled with lingering concerns about global economic growth. However, traders are closely watching diplomatic developments, with reports suggesting renewed efforts by Washington and Beijing to ease trade tensions. Any sign of progress could help revive demand expectations for crude.
Geopolitical factors have also contributed to the latest price support. Sanctions targeting certain energy exporters have tightened supply in some markets, while production disruptions in parts of the Middle East and North Africa continue to limit output.
Despite the modest rebound, market observers cautioned that the outlook remains uncertain. “While the recent bounce has lifted prices off their lows, there is still significant downside risk if global demand fails to recover or if production continues to rise,” said another analyst.
The International Energy Agency (IEA) recently warned that global oil markets could face a supply surplus in early 2026 if economic growth remains sluggish and producers maintain current output levels.
For now, traders are balancing optimism over trade negotiations and government stockpiling measures against the risk of weaker consumption and rising inventories.
