Oil exceeds $104: China ready to buy U.S. black gold

Oil continues its rally following the recent conversation between Xi Jinping and Donald Trump. Crude prices climbed back above $104 per barrel, reigniting fears of renewed inflationary pressures across global markets. Supporting the surge in black gold was growing optimism over a possible strengthening of energy relations between the United States and China. According to market rumors, the Chinese leader expressed willingness to increase purchases of U.S. crude oil, although no official confirmation has yet been released by Beijing.

On international markets, Brent futures for July delivery jumped 3.25% to $104.46 per barrel, while U.S. West Texas Intermediate (WTI) crude for June delivery gained 2.11% to $103.30 per barrel. The rally reflects not only expectations of stronger global demand, but also persistent concerns surrounding supply dynamics and geopolitical tensions.

The return of crude oil above the $100 threshold further reinforces the “higher for longer” interest-rate scenario. Rising energy prices risk creating additional pressure on production costs and consumer prices, potentially slowing the disinflation process seen in recent months. This environment could push major central banks — led by the Federal Reserve — to maintain a restrictive monetary stance for longer than previously expected.

Despite geopolitical tensions and macroeconomic uncertainty, markets interpreted the tone of the dialogue between Xi Jinping and Donald Trump positively. Trump, now back in the White House, expressed satisfaction with the outcome of the talks, fueling hopes for a new phase of economic cooperation between Washington and Beijing, particularly in trade and energy.