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| Crude Oil |
Weak U.S. dollar and US-China trade optimism lift global oil markets
International crude oil prices surged on June 9, marking the highest levels since April, as a weakening U.S. dollar and optimism around US-China trade talks fueled a more bullish outlook for global energy demand.
The U.S. dollar index dropped by 0.3%, making dollar-denominated oil cheaper for investors holding other currencies. This currency movement, coupled with speculation about improved global trade conditions, provided solid upward momentum in oil markets.
On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for July delivery rose by $0.71 (1.1%) to $65.29 per barrel. Meanwhile, Brent crude for August delivery settled at $67.04 per barrel, up $0.57 (0.9%).
Market participants are watching closely as U.S. and Chinese trade officials meet in London, with hopes that progress in negotiations could revive global economic growth and strengthen crude oil demand in the second half of 2025.
ScrapInsight Editorial Commentary
The rebound in crude oil prices reflects broader macroeconomic hopes as well as FX-driven adjustments. While short-term demand remains soft, especially in Asia, even slight optimism on trade talks is enough to jolt speculative buying. Watch for how this impacts transportation-related scrap sectors like used oil, aluminum cans, and catalytic converters.
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