#TradeWarEases

The US-China trade war appears to be easing, with recent developments suggesting a potential de-escalation. Here's what's happening¹ ²:

- *Trade Talks Progress*: The US and China have concluded a weekend of trade negotiations, with both sides touting "progress" and an "important consensus". A joint statement is expected, but details remain scarce.

- *Tariff Reductions*: There are indications of significant reductions to tariffs on Chinese goods, which could mark a major shift in the trade war that has lasted nearly a decade.

- *Market Reaction*: Oil prices have climbed, with Brent crude futures rising 0.4% to $64.18 a barrel and US West Texas Intermediate (WTI) crude futures advancing 0.5% to $61.30 a barrel.

- *Global Market Impact*: The potential easing of the trade war has boosted market sentiment, with emerging markets and global commerce likely to benefit from reduced tariffs and increased economic activity.

However, some analysts caution that gains might be capped by other market factors, such as:

- *OPEC+ Supply Plans*: The Organization of the Petroleum Exporting Countries and its allies plan to increase oil output in May and June, which could introduce more crude supply into the market.

- *Geopolitical Developments*: Ongoing negotiations between the US and Iran regarding Tehran's nuclear program could also impact global oil supply constraints and prices.