Oil prices hold gains ahead of US-China trade talks
Oil prices
held on to last week's gains early on Monday as investors waited for U.S.-China trade talks to be held in London later in the day.
Brent crude futures
were flat at $66.47 a barrel at 0008 GMT. U.S.
West Texas Intermediate
crude was trading up 1 cent at $64.59.
The prospect of a U.S.-China trade deal supported prices as three of
Donald Trump
's top aides were set to meet with counterparts in London on Monday for the first meeting of the U.S.-China economic and trade consultation mechanism.
The announcement on Saturday followed a rare Thursday call between the two countries' top leaders, with both under pressure to dial down tensions as China's export controls on rare earths disrupt
global supply chains
. Oil prices posted their first weekly gain in three weeks on the news.
A U.S. jobs report showing unemployment held steady in May appeared to increase the odds of a
Federal Reserve interest rate cut
, further supporting last week's gains. Inflation data from China on Monday morning will give a reading of domestic demand in the world's largest crude importer.
The economic data and the prospect of a trade deal that could support
economic growth
and increase demand for oil outweighed worries about increased
OPEC+ supply
after the group announced another big output hike for July on May 31.
HSBC expects OPEC+ to accelerate supply hikes in August and September, which are likely to raise downside risks to the bank's $65 per barrel Brent forecast from the fourth quarter of 2025, according to a research note on Friday.
Capital Economics researchers said they believe this "new faster pace of (OPEC+) production rises is here to stay".
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