Oil Prices Dip as US-China Trade Talk Boosts Optimism
Oil prices fell slightly on Tuesday as growing optimism regarding trade negotiations between the US and China supported market sentiment. International benchmark Brent crude decreased by around 0.1%, trading at $66.68 per barrel on Tuesday, down from $66.75 at the previous session’s close.
Similarly, US benchmark West Texas Intermediate (WTI) fell by about 0.26%, settling at $64.37 per barrel, compared to $64.54 in the prior session. Trade talks between the US and China, launched on Monday in London to resolve long-standing tariff disputes, have drawn global investor attention as the world’s two largest economies seek a solution to trade tensions.
US Treasury Secretary Scott Bessent, representing Washington in the talks, said the meeting is “well,” while Commerce Secretary Howard Lutnick described it as “productive.”
US President Donald Trump’s statements on the trade talks are also being closely followed by investors, with Trump saying he has received good news from the trade talks with Chinese officials in London.
Things were going very well with Beijing, Trump noted, adding that he wanted US companies to open up to China. Trade talks stalled shortly after a May 12 agreement between the two largest economies to reduce tariff rates.
Under the deal, Washington and Beijing agreed to a 90-day suspension of most tariffs and to roll back measures imposed since early April.
A potential deal between Washington and Beijing is expected to boost demand from the world’s largest oil consumers, adding upward pressure on prices. Meanwhile, stalled nuclear talks between the US and Iran are heightening supply concerns.
US President Trump noted the difficulty of engaging with Iran. “They are good negotiators, but they’re tough. Sometimes they can be too tough, that’s the problem.”
“We’re trying to make a deal so that there’s no destruction and death. And we’ve told them that, and I’ve told them that, and I hope that’s the way it works out, but it might not work out that way. We’ll soon find out,” he said.
Trump, who withdrew the US from a 2015 nuclear agreement between world powers and Iran, is seeking a new deal. He has said that Iran would not be allowed to obtain a nuclear bomb.
Also, the head of the UN’s nuclear watchdog expressed concern over the scale of Iran’s uranium enrichment, warning that the country’s current stockpile is edging dangerously close to the threshold needed for a nuclear weapon.
Speaking at a news conference, the Director General of the International Atomic Energy Agency (IAEA) Rafael Grossi said the level of enrichment being carried out by Tehran “cannot be ignored.” #Oil Prices Dip as US-China Trade Talk Boosts Optimism Unilever Nigeria Hits 52-Week High, Approaches New Target Price
