08:59 AM EDT, 05/08/2025 (MT Newswires) -- Oil prices rose early on Thursday amid hopes around a cooling of trade tensions as the United States readies for tariff talks with China, while reports said the Trump Administration has reached a trade deal with the United Kingdom.

West Texas Intermediate crude oil for June delivery was last seen up US$1.08 to US$59.15 per barrel, while July Brent crude was up US$1.01 to US$62.13.

The rise comes as U.S. Treasury Secretary Scott Bessent and Chinese officials are to meet in Switzerland on the weekend for talks on ending their tariff battle that has nearly suspended all trade between the world's two largest economies. As well, reports said the United States reached a new trade agreement with the United Kingdom. However the Wall Street Journal said despite a social media statement from U.S. President Trump that the agreement will be "full and comprehensive", the pair are likely to only announce the start of talks.

Still, the news offers the market hope global trade disrupted by Trump's April 2 announcement of blanket tariffs on U.S. imports from nearly all the country's trading partners may be on the mend.

"Traders continue to focus on US trade talks with China this weekend as Trump moves closer to a deal with the UK.," Saxo Bank noted.

However rising supply continues to check price optimism, as OPEC+ readies to add a second monthly tranche of 411,000 barrels per day of oil to market in June, even as output from outside the cartel is on the rise. In its Short-Term Energy Outlook released on Tuesday, the Energy Information Administration said it believes global inventories are already on the rise, building by 0.3-million barrels per day over the first four months of this year and rise to 0.7-million bpd by the fourth quarter.