Oil Prices Steady Amid US-China Trade Talks
Oil prices steadied on Friday. They were on track for their first weekly gain in three weeks. This followed resumed trade talks between US President Donald Trump and Chinese leader Xi Jinping. The talks sparked hopes for growth and stronger demand in the world’s two largest economies.
Market Trends:
- Brent crude futures fell 9 cents to $65.25 a barrel by 1210 GMT.
- US West Texas Intermediate crude lost 12 cents to $63.25.
- Both benchmarks are on track for their first weekly gain in three weeks, with Brent up 2.2% and WTI up 4.1% this week.
Trade Talks and Market Impact
The trade talks between the US and China have reduced trade uncertainty, boosting hopes for stronger demand. Canada also continued trade talks with the US, with Prime Minister Mark Carney in direct contact with Trump.
Market Outlook
Analysts at BMI, a Fitch affiliate, noted upside risks to prices. These risks may arise from potential US sanctions on Venezuela. Additionally, Israeli strikes on Iranian infrastructure could contribute to these risks. However, they also cited downside pressures from weaker demand and increased production from OPEC+ and non-OPEC producers.
OPEC+ Production
Saudi Arabia, as the top exporter, cut its July crude prices for Asia to near two-month lows. This was a smaller reduction than expected. OPEC+ had agreed to ramp up output by 411,000 barrels per day in July. HSBC analysts expect the market to remain balanced in the second and third quarters but forecast a bigger surplus in the fourth quarter of 2025
