Oil Prices Reacted To The Results Of Trade Talks Between The US And China
- 11.06.2025, 9:31
- 4,088
Brent futures fell.
Oil prices declined as investors weigh the implications of recent trade talks between the United States and China, the results of which are yet to be considered by President Donald Trump.
According to Reuters.
It is also noted that additional pressure on the market is exerted by weak demand for oil from China and increased production by OPEC+ countries.
Brent crude futures fell 19 cents (0.3%) to $66.68 per barrel, while U.S. West Texas Intermediate crude fell 16 cents (0.3%) to $64.82.
U.S. Commerce Secretary Howard Lutnick said U.S. and Chinese representatives agreed on a basic plan to resume a trade truce and resolve China's restrictions on exports of rare earth metals and magnets.
"The current price decline can be attributed to both technical profit taking and caution ahead of the official announcement on the U.S. and China," said Philip Nova Senior Market Analyst, Priyanka Sachdeva.
Market Expert with IG Tony Sycamore commented, "What does this mean for oil? Reduced risks to the Chinese economy and a stabilizing US economy, both of which should support oil demand and its price."
In the meantime, on the supply side, OPEC+ countries plan to increase oil production by another 411,000 bpd in July. This is the fourth month in a row that they have gradually reduced previous production limits. Some analysts doubt that rising regional demand will be able to fully absorb this additional volume.
"Increased domestic demand in OPEC+ countries - especially in Saudi Arabia - could offset the additional supply in the coming months and support oil prices," said Capital Economics climate and commodities analyst Hamad Hussein. "However, as this is a seasonal increase in demand, we still forecast the Brent price to fall to $60 a barrel before the end of the year."
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