Oil Prices Hold Steady Ahead of Trump-Xi Summit
Oil prices traded mostly unchanged during Asian trading on Thursday as investors waited for a key meeting between U.S. President Donald Trump and Chinese President Xi Jinping for further signals regarding the ongoing Iran conflict and its impact on global energy markets.
Brent crude futures for July delivery rose 0.1% to $105.68 per barrel, while U.S. West Texas Intermediate (WTI) crude futures also gained 0.1% to $101.08 per barrel.
Although both benchmark contracts fell more than 1% during the previous trading session, they remain on track for strong weekly gains.
Markets Watch Trump-Xi Talks Closely
Global energy markets are focused on the high-profile Trump-Xi summit taking place in Beijing, where discussions are expected to include trade tensions, Taiwan, and the escalating Iran crisis.
Traders are particularly looking for signs that China, the world’s largest crude oil importer, could help ease geopolitical tensions in the Middle East.
Oil prices have stayed above the $100-per-barrel level as concerns continue over possible disruptions in the Strait of Hormuz, a critical shipping route responsible for roughly one-fifth of global oil supply.
IEA Warns of Tight Oil Supply in 2026
The International Energy Agency warned this week that global oil markets could remain significantly undersupplied throughout much of 2026 because of the Iran conflict and reduced exports from Gulf producers.
Meanwhile, OPEC lowered its forecast for global oil demand growth in 2026, pointing to the economic impact of the conflict and sharply higher fuel prices.
However, OPEC maintained its broader outlook for global economic growth despite the ongoing geopolitical uncertainty.
Mixed U.S. Signals Keep Traders Cautious
Investors also continued monitoring diplomatic signals from Washington regarding potential negotiations with Tehran.
Trump recently stated that a possible ceasefire was on “massive life support,” reducing expectations for a quick resolution to the conflict and keeping energy traders cautious.
Falling U.S. Oil Inventories Support Prices
Oil prices also received support from declining U.S. crude inventories.
Government data released this week showed that U.S. oil stockpiles fell by 4.3 million barrels last week, significantly more than analysts’ expectations for a decline of 2 million barrels.
The larger-than-expected drawdown pointed to resilient fuel demand despite elevated oil prices and ongoing geopolitical tensions.
