Oil prices declined as weaker exports and lower crude imports from China, combined with OPEC+ plans to raise output, reignited concerns about a potential supply glut.
International benchmark Brent crude decreased by around 0.6%, trading at $65.95 per barrel at 10.05 a.m. local time (0705GMT), up from $66.34 at the previous session’s close.
Similarly, US benchmark West Texas Intermediate (WTI) fell by about 0.6%, reaching $63.68 per barrel, compared to $64.09 in the prior session.
Chinese exports in May dropped to a three-month low due to the impact of US tariffs, while factory-gate deflation deepened to its worst level in two years. The data pointed to growing domestic and external pressures on the world’s second-largest economy.
China’s crude oil imports in May also fell to their lowest daily rate in four months, mainly due to widespread maintenance among state-owned and independent refiners.
Additionally, three of US President Donald Trump’s senior aides are expected to meet their Chinese counterparts for the first round of the US-China economic and trade consultation mechanism.
However, tensions between Trump and Tesla CEO Elon Musk have cast a shadow over the optimistic tone following a recent phone call between Trump and Chinese President Xi Jinping. Investors are now turning their focus to key US jobs data due later today.
Despite OPEC+ announcing a fresh production increase for July on May 31, hopes that a potential US-China trade deal could support global growth and boost oil demand have helped offset concerns about supply.
According to energy services firm Baker Hughes, the number of active oil rigs in the US – an early indicator of future production – fell by nine to 442 last week.
By Humeyra Ayaz
