US-China trade negotiations: Oil prices steady as investors eyes trade talks in London; Brent holds above $66

Oil prices remained steady on Monday following final week’s beneficial properties, as markets awaited the end result of renewed US-China trade negotiations in London. Brent remained above $66 per barrel following a 4% improve final week, with West Texas Intermediate hovering close to $65.US and Chinese negotiators are scheduled to satisfy in London on Monday for the primary spherical of talks below the revived financial and trade session mechanism, elevating hopes of easing tensions between the world’s two largest economies.The announcement got here after a uncommon cellphone name between the 2 nations’ high leaders on Thursday, as either side face rising strain to ease tensions—particularly amid China’s export curbs on uncommon earths disrupting world provide chains.“The meeting should go very well,” US President Donald Trump wrote on Truth Social on Friday afternoon. “Thank you for your attention to this matter!” he added.Oil prices recorded their first weekly improve in three weeks following the announcement. London crude prices have declined by 11% this 12 months, reflecting issues that intensifying trade disagreements may impede world development and vitality consumption.Simultaneously, OPEC+ has elevated manufacturing extra quickly than anticipated, fuelling issues about potential oil surplus in the latter half of the 12 months affecting prices.Oil value volatility has moderated since mid-May, regardless of downward strain throughout Trump’s second time period. Market members are evaluating a number of components, together with constructive developments in trade negotiations, elevated gasoline demand throughout summer season journey in the northern hemisphere, alongside potential dangers stemming from conditions in Iran and Russia.The consequence of the upcoming UK assembly may play a key position in shaping market sentiment amid ongoing trade tensions, Gao Mingyu, Beijing-based chief vitality analyst at SDIC Essence Futures Co advised Bloomberg.“If the UK meeting continues to signal optimism, it could weaken the negative economic impact of the trade war,” the analyst famous.“After the short-term bearish impact of OPEC+’s July ouptut hike was digested, improving macro sentiment, stronger seasonal demand, and lingering geopolitical risks have all provided support,” she added.Since mid-May, oil futures have moved inside a slender $4 vary, whereas volatility has dropped to its lowest ranges since early April. At the identical time, Brent crude’s immediate unfold has widened into backwardation, a market sample that alerts stronger near-term demand.