A rebound in oil prices may be closer than many expect, especially if diplomatic efforts between the U.S. and China yield even modest progress, according to Wall Street strategist Ed Yardeni.
In a note shared Thursday, Yardeni said a potential turning point for crude could emerge from the convergence of declining U.S. shale output and rising expectations for global demand recovery, particularly if trade tensions ease.
“Headlines about US and Chinese diplomats meeting to discuss tariffs may indicate that cooler heads have prevailed; neither side wants to be held responsible for causing an economic downturn,” Yardeni said.
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Crude Extends Deep Slide As OPEC Raises Output More Than Expected
Crude oil prices — tracked by the United States Oil Fund (NYSE:USO) — have dropped 17% year-to-date. Brent crude recently slipped into the low $60s and West Texas Intermediate (WTI) tumbling to $58.
Notably, most of that decline has come in just the …