Oil Prices Steady in Asia as Markets Await U.S.-China Trade Talks, Chinese Economic Data
Oil prices held near recent levels during Asian trading on Monday, as investor sentiment remained cautious ahead of high-stakes U.S.-China trade talks in London scheduled for later in the day. Market participants were also closely watching upcoming Chinese economic reports, including inflation and trade data.
By 21:00 ET (01:00 GMT), July Brent crude futures dipped 0.1% to $66.43 per barrel, while West Texas Intermediate (WTI) crude slipped by the same margin to $64.52.
Last week, both benchmarks surged over 4%, buoyed by stronger-than-expected U.S. employment data and the restart of U.S.-China trade negotiations—developments that helped ease fears of a broader global economic slowdown.
Focus on US-China Talks for Demand Outlook
Key U.S. figures, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, are slated to meet with Chinese Vice Premier He Lifeng in London to discuss a potential rollback of tariffs, easing export restrictions, and addressing broader trade tensions.
These discussions take place against a backdrop of ongoing economic uncertainty and supply chain disruptions, as both countries aim to stabilize a relationship strained by issues ranging from advanced technology controls to access to critical raw materials like rare earths.
This round of talks follows a diplomatic breakthrough in Geneva last month and marks the first formal dialogue since that meeting. Investors are watching closely for any signs of progress that could boost global trade flows and support oil demand.
Crude Under Pressure Amid Global Risks
Oil markets have been weighed down by concerns over weakening trade activity and soft economic signals from China. At the same time, rising output from OPEC and its allies (OPEC+)—who have steadily ramped up production this year—has added further pressure on crude prices.
Chinese Data in Spotlight
Caution was also heightened ahead of the release of key Chinese economic indicators on Monday, including May consumer price index (CPI) and trade data. Investors are wary of further signs of weakening domestic demand in China, the world’s second-largest oil consumer.
Sluggish export performance—exacerbated by persistent U.S. tariffs—continues to challenge China’s manufacturing and trade competitiveness.
Overall, markets remain in a holding pattern, with sentiment hinging on the outcomes of both the trade talks and China’s economic readings later in the day.
