Brent and WTI Futures Stable as Markets Await Key Negotiations
Oil prices remained steady in Asian trading on Monday as investors remained cautious ahead of crucial US-China trade talks in London. Market focus also shifted to a series of key Chinese economic data releases, including inflation and trade figures, which could provide insights into global demand trends.
As of 21:00 Eastern Time (09:00 Beijing Time), July-dated Brent crude futures edged down 0.1% to 66.43 per barrel,while WestTexasIntermediate(WTI)futures alsoslipped 0.164.52 per barrel.
Despite the slight dip, both benchmarks posted weekly gains of over 4%, supported by a stronger-than-expected US jobs report and renewed trade negotiations between Washington and Beijing, which eased concerns about a global economic slowdown.
Key Drivers Behind Oil Price Stability
1. Trade Talks Offer Hope for Demand Recovery
Senior US officials, including US Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, are set to meet with Chinese Vice Premier He Lifeng in London to discuss tariff reductions, export controls, and broader bilateral trade issues.
These negotiations come amid ongoing global economic uncertainty and supply chain tensions, with both sides seeking to stabilize relations strained by disputes over technology and rare earth resources.
The talks follow preliminary diplomatic progress made in Geneva last month, and markets are watching closely for any signs of an agreement that could ease trade flows and support commodity demand.
2. OPEC+ Supply Increases Weigh on Prices
While OPEC+ has been gradually increasing production this year, concerns about potential supply disruptions—particularly from major shale producers cutting output due to low prices—have helped sustain oil prices.
3. China’s Economic Data in Focus
Investors are closely watching China’s upcoming economic data releases, including CPI inflation and trade figures, for signs of domestic demand strength in the world’s second-largest economy.
Weak trade data, combined with the ongoing impact of US tariffs, continues to pressure Chinese manufacturing and export competitiveness, which could dampen oil demand if the numbers disappoint.
Market Sentiment Remains Cautious
The overall mood in the oil market remains cautiously optimistic, with traders waiting for clear signals from the US-China talks and China’s economic data before making significant moves.
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