Global oil prices edged lower on Monday as markets turned their attention to high-stakes trade talks between the United States and China set to take place in London later today.
Brent crude futures fell by 11 cents, trading at $64.61 per barrel as of 7:28 a.m. WAT, while U.S. West Texas Intermediate (WTI) dipped 4 cents to $64.54.
The modest decline comes after a strong performance last week, where Brent rose by 4% and WTI surged by 6.2%, breaking a three-week losing streak. Those gains were fueled by optimism surrounding renewed dialogue between the world’s two largest economies, sparking hopes for progress on longstanding trade disputes.
According to reports, three senior aides to former U.S. President Donald Trump are scheduled to meet their Chinese counterparts in what will be the first round of economic and trade consultation talks in months. Investors are watching closely for signs of a breakthrough that could stabilize global trade and bolster energy demand.
Meanwhile, fresh economic data out of China showed export growth slowing to a three-month low in May, largely due to lingering effects of U.S.-imposed tariffs. The same report revealed that China’s crude oil imports fell to their lowest daily rate in four months, as both state-owned and independent refiners conducted routine maintenance.
Despite growing supply concerns, hopes of a U.S.–China trade resolution appear to be offering more market support. These expectations have so far outweighed fears surrounding the potential impact of increased production from OPEC+.
The alliance of oil producers had announced another significant output hike set for July, following a May 31 meeting. Analysts warned in a recent research note that further supply expansions in August and September could pose downside risks to their $65 per barrel Brent forecast for Q4 2025.
As the market awaits outcomes from today’s London discussions, traders remain cautiously optimistic that a thaw in trade tensions could provide some balance against supply-side headwinds.
