Oil prices softened on Wednesday as markets assessed the outcome of U.S.-China trade talks, yet to be reviewed by President Donald Trump, with weak oil demand from China and OPEC+ production increases weighing on the market.
Brent crude futures declined 15 cents, or 0.2%, to trade at $66.72 a barrel, while U.S. West Texas Intermediate crude fell 10 cents, or 0.2%, to $64.88 at 0644 GMT.
U.S. and Chinese officials agreed on a framework to put their trade truce back on track and resolve China’s export restrictions on rare earth minerals and magnets, U.S. Commerce Secretary Howard Lutnick said on Tuesday at the conclusion of two days of intense negotiations in London.
The two countries are world’s two largest economies and oil consumers. “The current (price) corrections can be attributed to a mix of technical profit-taking and caution leading up to the US-China (official) announcement,” said Phillip Nova, senior market analyst Priyanka Sachdeva.
Trump will be briefed on the outcome before approving it, Lutnick added.
