Oil Prices Hold Steady Amid US-China Trade Talks, OPEC+ Production Increase

Oil prices have steadied around $65 to $67 per barrel amid renewed optimism from US-China trade talks held in London, aiming to ease the ongoing trade war that has unsettled global markets. The talks, involving senior officials from both sides including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, focus on tariff rollbacks, export controls, and broader trade concerns, raising hopes for improved global trade relations. Despite the optimism, oil markets remain cautious due to weak economic data from China, including slowing exports and reduced oil imports, combined with accelerated production increases from OPEC+ which could contribute to a potential supply glut. President Donald Trump expressed optimism about the talks, highlighting the importance of easing tensions to support global economic growth and energy demand. Analysts note that while trade discussions and seasonal fuel demand support oil prices, risks from geopolitical tensions in regions like Iran and Russia persist, and market volatility has moderated since mid-May. The outcome of these negotiations is seen as pivotal to reducing the negative economic impact of the trade war and stabilizing commodity markets.