Oil prices fall slightly ahead of US-China trade talks
Oil prices slipped in early trade today, June 9, as markets awaited bilateral trade talks between the world's two largest economies, scheduled to take place in London later in the day.
Brent crude was trading down 0.1% at $66.40 a barrel, at 08:03 am Makkah time. West Texas Intermediate (WTI) crude fell 0.1% to $64.52 a barrel.
Three top aides to US President Donald Trump are scheduled to meet with their Chinese counterparts today, in the first meeting on US-China economic and trade negotiations, Reuters reported.
According to Customs data, the world's largest buyer of crude oil imported 46.6 million tons in May, equivalent to 10.97 million barrels per day (bpd), a 3% decrease month-on-month and the lowest daily level in four months.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
16 minutes ago
- Arab News
World Bank slashes global growth forecast as trade tensions bite
WASHINGTON: The World Bank on Tuesday slashed its global growth forecast for 2025 by 0.4 percentage point to 2.3 percent, saying that higher tariffs and heightened uncertainty posed a 'significant headwind' for nearly all economies. In its twice-yearly Global Economic Prospects report, the bank lowered its forecasts for nearly 70 percent of all economies — including the United States, China and Europe, as well as six emerging market regions — from the levels it projected just six months ago before US President Donald Trump took office. Trump has upended global trade with a series of on-again, off-again tariff hikes that have increased the effective US tariff rate from below 3 percent to the mid-teens — its highest level in almost a century — and triggered retaliation by China and other countries. The World Bank is the latest body to cut its growth forecast as a result of Trump's erratic trade policies, although US officials insist the negative consequences will be offset by a surge in investment and still-to-be approved tax cuts. The bank stopped short of forecasting a recession, but said global economic growth this year would be its weakest outside of a recession since 2008. By 2027, global gross domestic product growth was expected to average just 2.5 percent, the slowest pace of any decade since the 1960s. The report forecast that global trade would grow by 1.8 percent in 2025, down from 3.4 percent in 2024 and roughly a third of its 5.9 percent level in the 2000s. The forecast is based on tariffs in effect as of late May, including a 10 percent US tariff on imports from most countries. It excludes increases announced by Trump in April and then postponed until July 9 to allow for negotiations. The bank said global inflation was expected to reach 2.9 percent in 2025, remaining above pre-COVID levels, given tariff increases and tight labor markets. 'Risks to the global outlook remain tilted decidedly to the downside,' the bank wrote. It said its models showed that a further 10-percentage point increase in average US tariffs, on top of the 10 percent rate already implemented, and proportional retaliation by other countries, could shave another 0.5 percentage point off the outlook for 2025. Such an escalation in trade barriers would result 'in global trade seizing up in the second half of this year ... accompanied by a widespread collapse in confidence, surging uncertainty and turmoil in financial markets,' the report said. Nonetheless, it said the risk of a global recession was less than 10 percent. 'FOG ON A RUNWAY' Top officials from the United States and China are meeting in London this week to try to defuse a trade dispute that has widened from tariffs to restrictions over rare earth minerals, threatening a global supply chain shock and slower growth. 'Uncertainty remains a powerful drag, like fog on a runway. It slows investment and clouds the outlook,' World Bank Deputy Chief Economist Ayhan Kose told Reuters in an interview. But he said there were signs of increased dialogue on trade that could help dispel uncertainty, and supply chains were adapting to a new global trade map, not collapsing. Global trade growth could see a modest rebound in 2026 to 2.4 percent, and developments in artificial intelligence could also boost growth, he said. 'We think that eventually the uncertainty will decline,' he said. 'Once the type of fog we have lifts, the trade engine may start running again, but at a slower pace.' Kose said while things could get worse, trade was continuing and China, India and others were still delivering robust growth. Many countries were also discussing new trade partnerships that could pay dividends later, he said. US GROWTH FORECAST CUT SHARPLY The World Bank said the global outlook had 'deteriorated substantially' since January, mainly due to advanced economies, now seen growing by just 1.2 percent, down half a point, after expanding 1.7 percent in 2024. The US forecast was slashed by 0.9 percentage point from its January forecast to 1.4 percent, and the 2026 outlook was lowered by 0.4 percentage point to 1.6 percent. Rising trade barriers, 'record-high uncertainty' and a spike in financial market volatility were expected to weigh on private consumption, trade and investment, it said. Growth estimates in the euro area were cut by 0.3 percentage point to 0.7 percent and in Japan by 0.5 percentage point to 0.7 percent. It said emerging markets and developing economies were expected to grow by 3.8 percent in 2025 versus 4.1 percent in January's forecast. Poor countries would suffer the most, the report said. By 2027 developing economies' per capita GDP would be 6 percent below pre-pandemic levels, and it could take these countries — minus China — two decades to recoup the economic losses of the 2020s. Mexico, heavily dependent on trade with the US, saw its growth forecast cut by 1.3 percentage points to 0.2 percent in 2025. The World Bank left its forecast for China unchanged at 4.5 percent from January, saying Beijing still had monetary and fiscal space to support its economy and stimulate growth.
Al Arabiya
2 hours ago
- Al Arabiya
Hopes rise as US and China hold second day of trade talks
The United States and China began a second day of trade talks on Tuesday, seeking to shore up a shaky tariff truce in a bitter row deepened by export curbs. The gathering of key officials from the world's two biggest economies began Monday in London, after an earlier round of talks in Geneva last month. Stock markets wavered as investors hoped the talks will bring some much-needed calm on trading floors and ease tensions between the economic superpowers. A US Treasury spokesman told AFP on Tuesday the 'talks resumed earlier this' morning. One of US President Donald Trump's top advisers said he expected 'a big, strong handshake' at the end of the talks in the historic Lancaster House, operated by the UK foreign ministry. Trump told reporters at the White House on Monday: 'We are doing well with China. China's not easy.' 'I'm only getting good reports.' The agenda is expected to be dominated by exports of rare earth minerals used in a wide range of things including smartphones, electric vehicle batteries and green technology. 'In Geneva, we had agreed to lower tariffs on them, and they had agreed to release the magnets and rare earths that we need throughout the economy,' Trump's top economic adviser, Kevin Hassett, told CNBC on Monday. But even though Beijing was releasing some supplies, 'it was going a lot slower than some companies believed was optimal,' he added. Still, he said he expected 'a big, strong handshake' at the end of the talks. 'Our expectation is that after the handshake, any export controls from the US will be eased, and the rare earths will be released in volume,' Hassett added. He also said the Trump administration might be willing to ease some recent curbs on tech exports. Concessions? Tensions between Washington and Beijing have heightened since Trump took office in January, with both countries engaging in a tariffs war hiking duties on each other's exports to three figures -- an effective trade embargo. The Geneva pact to cool tensions temporarily brought new US tariffs on Chinese goods down from 145 percent to 30 percent, and Chinese countermeasures from 125 percent to 10 percent. But Trump recently said China had 'totally violated' the deal. 'Investors are willing to grab on to any positive trade headline right now, as this is keeping hopes of a rally alive,' said Kathleen Brooks, research director at trading group XTB. Ipek Ozkardeskaya, senior analyst at the Swissquote Bank, said that although there had been 'no breakthrough' it seemed 'the first day of the second round of negotiations reportedly went relatively well.' 'Rumours are circulating that the US may be willing to make concessions on tech exports in exchange for China easing restrictions on rare earth metal exports,' she said. Rare earth shipments from China to the US have slowed since the tariff war was triggered by Trump's so-called 'Liberation Day' announcements, according to Brooks. The US leader slapped sweeping levies of 10 percent on friend and foe alike, and threatened steeper rates on dozens of economies. The tariffs have already had a sharp effect, with official figures from Beijing showing Chinese exports to the United States in May plunged by 12.7 percent. China is also in talks with other trading partners -- including Japan and South Korea -- to try to build a united front to counter Trump's tariffs. Chinese leader Xi Jinping on Tuesday urged South Korea's new President Lee Jae-myung to work with Beijing to uphold free trade to ensure 'the stability and smooth functioning of global and regional industrial and supply chains.' 'A healthy, stable, and continuously deepening China-South Korea relationship aligns with the trend of the times,' Xi said in a phone call, according to the Xinhua news agency. Chinese Vice Premier He Lifeng is heading the team in London, which included Commerce Minister Wang Wentao and China International Trade Representative Li Chenggang. US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are leading the US delegation.
Arab News
5 hours ago
- Arab News
Pakistan says China has offered to sell new military equipment, including J-35 fighter jets
ISLAMABAD: Pakistan's government this month announced that China has offered to sell it its new military equipment, including 40 of its advanced fifth-generation J-35 fighter jets and ballistic missile defense systems following Islamabad's armed conflict with India in May. Nuclear-armed neighbors India and Pakistan engaged in armed conflict for four days from May 7-10, pounding each other with artillery fire, fighter jets, drones and missiles. Fighting stopped on May 10 when US President Donald Trump announced both countries had agreed to a ceasefire. Pakistan said its air force downed six Indian fighter jets using Chinese J-10C aircraft on the night of May 6. On May 31, the chief of defense staff of the Indian Armed Forces, Anil Chauhan, confirmed India lost an unspecified number of fighter jets in clashes with Pakistan last month. Both countries have since then sought to bolster their defense capabilities and procure the latest arms as tensions continue to simmer between both nations. Pakistan's government said in a social media post on June 7 that China has also offered to sell KJ-500 airborne early warning and control aircraft, as well as HQ-19 ballistic missile defense systems to Pakistan. 'Under Prime Minister Muhammad Shehbaz Sharif, Pakistan has achieved several major diplomatic achievements including the offer of 40 fifth-generation J-35 stealth aircraft, KJ-500 AWACS, HQ-19 defense systems from China, and the deferment of $3.7 billion in debt,' the Government of Pakistan wrote on social media account X. وزیراعظم محمد شہباز شریف {@CMShehbaz } کی زیرِ صدارت پاکستان نے کئی عظیم سفارتی کامیابیاں حاصل کیں، جن میں چین کی جانب سے 40 ففتھ جنریشن J-35 اسٹیلتھ طیارے، KJ-500 اواکس، HQ-19 ڈیفنس سسٹم کی پیشکش اور 3.7 بلین ڈالر قرض کی مؤخر ادائیگی شامل ہے، ہواوے کے تعاون سے 100,000 پاکستانیوں… — Government of Pakistan (@GovtofPakistan) June 6, 2025 As per a report in the international news publication Bloomberg on Monday, the shares of Chinese defense companies rallied this week after Pakistan's announcement of Beijing's offer to sell its aircraft. The report said shares of AVIC Shenyang Aircraft Company— the maker of China's J-35 stealth fighter jet— soared by their 10 percent daily limit in Shanghai, extending gains for the third consecutive session on Monday. The shares of another China-based company, Aerospace Nanhu Electronic Information Technology Co., soared by 15 percent, the report added. The shares of Chinese arms makers have surged since Pakistan said its air force downed six Indian fighter jets, using Chinese J-10C aircraft, on the night of May 6. The two countries had engaged in armed conflict that day after India struck what it called 'terrorist' camps in Pakistan. The J-35 stealth fighter jet was developed by Shenyang Aircraft Corporation and publicly unveiled at the 2024 Zhuhai Airshow. Its sale to Pakistan would mark China's first export of the fifth-generation jet, which has advanced stealth capabilities for penetrating the airspace of an adversary. On the other hand, the KJ-500 aircraft would improve Pakistan's radar coverage, and its smaller size allows for nimbler use in regional clashes, the report said. The HQ-19 surface-to-air missile systems would enhance the country's ability to intercept ballistic missiles. 'In a sign of how the conflict is changing dynamics, Indonesia— which has relied on aircraft from makers in the US, Russia and elsewhere— is mulling China's offer of J-10 jets,' Bloomberg reported. 'Southeast Asia's largest economy has bought munitions and air surveillance systems from China in the past, but not jet fighters.' Tensions reached a boiling point when India blamed Pakistan for supporting an attack in Indian-administered Kashmir on April 22. Gunmen had killed 26 Indian tourists in Pahalgam resort. New Delhi, which has always blamed Pakistan for supporting militant outfits in the part of Kashmir it governs, accused Islamabad of having a hand in the attack. Pakistan denied the allegations and called for an international probe into the incident. Though the fragile ceasefire continues to hold, ties between the two countries remain strained. New Delhi and Islamabad have both sent delegations to world capitals in hopes of swaying international opinion in their favor.
