Oil prices slightly decreased on Monday amid uncertainty over trade talks between the US and China, as well as concerns about a potential oversupply in global oil markets.
International benchmark Brent crude fell by around 0.06%, trading at $65.83 per barrel at 10.37 am local time (0737 GMT), down from $65.87 at the previous session’s close.
US benchmark West Texas Intermediate declined by about 0.13%, reaching $62.85 per barrel, compared to its prior session close of $62.93.
US President Donald Trump, in an interview with Time magazine published Friday, stated that tariff negotiations were underway with China, though Beijing denied any talks were taking place. This adds to a series of mixed signals about the progress of efforts to ease a trade war.
Trump mentioned that the US had made 200 tariff deals and claimed that China’s President Xi Jinping had called him.
Conflicting statements on US-China trade talks are fueling concerns about the global oil demand outlook.
Concerns over a potential oversupply in global oil markets also weighed on prices.
Eight OPEC+ countries are reportedly considering accelerating production hikes for a second consecutive month in June. This comes after the group’s decision to raise output by 411,000 barrels per day (bpd) from May, up from the initially planned 138,000 bpd.
Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman are scheduled to hold a video conference on May 5 to decide on supply plans for June.
Moreover, diplomatic developments related to the Russia-Ukraine conflict, as well as ongoing nuclear negotiations with Iran, are raising concerns about increased oil supply.
US President Donald Trump and Ukrainian President Volodymyr Zelenskyy met on Saturday—their first face-to-face encounter since a tense White House meeting in February—at the funeral of Pope Francis in Vatican City.
Discussing the meeting, Trump told reporters, ‘I think the meeting went well. We’ll see what happens over the next few days.’
Regarding nuclear talks with Iran, Trump expressed optimism, stating, ‘The Iran situation, I think we’re doing very well. I think a deal is going to be made there… We’ll have something without having to start dropping bombs all over the place.’
The third round of nuclear negotiations between Iran and the US in the Omani capital Muscat concluded on Saturday, Iranian state media reported.
Delegations from both countries returned to their capitals for consultations before reconvening for another round next Saturday.
By Firdevs Yuksel
