Oil markets opened the week on a cautious note, with prices holding steady ahead of critical U.S.-China trade talks set to take place in London. The meetings are expected to influence global economic momentum—and by extension, fuel demand forecasts for crude oil.
As of 0940 GMT on Monday, Brent crude edged up by 4 cents to $66.51 a barrel, while U.S. West Texas Intermediate (WTI) dipped slightly by 1 cent to $64.57. The minor movement comes after a strong performance last week, with Brent rising 4% and WTI soaring 6.2% amid growing optimism around a trade resolution.
U.S. President Donald Trump and Chinese President Xi Jinping recently spoke over the phone, setting the stage for the London negotiations. Markets are hoping a thaw in trade tensions will strengthen global growth prospects and reinvigorate demand for energy commodities.
“Bad timing for crude oil, which was testing the top of the range and knocking on the door of a technical break above $65,” noted Tony Sycamore, market analyst at IG, referring to the WTI benchmark.
The talks could overshadow a slew of bearish data out of China, where export growth slowed and factory-gate deflation hit a two-year low. Additionally, China’s crude oil imports fell to a four-month low in May due to scheduled maintenance by state-owned and independent refiners.
Still, traders appear more focused on the macro picture. A successful U.S.-China trade deal could offset worries about China’s cooling economy and even buffer the impact of increased oil output expected next month from OPEC+ nations.
As global economic negotiations unfold, crude oil markets are bracing for a decisive shift—either toward renewed growth or further uncertainty.
