Oil slips ahead of US-China talks
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Oil prices edged lower on Wednesday as investors priced in a build in gasoline inventories in the US ahead of the US-China trade talks this weekend. Brent crude futures were down 77 cents a barrel, or around 1.24%, at $61.38 a barrel by 1:50 pm ET (1750 GMT), while US West Texas Intermediate crude was down 73 cents, or 1.24%, lower at $58.36 a barrel.
Both benchmarks plunged to four-year lows this week after OPEC+ decided to speed up output increases, stoking fears of oversupply at a time when US tariffs have increased concerns about demand. The US and China are due to meet in Switzerland, which could be the first step toward resolving a trade war disrupting the global economy.
The trade talks between the world's two largest economies come after weeks of escalating tensions that have seen duties on goods imports between the countries soar well beyond 100%.
"While the meeting may signal a thaw, expectations for a breakthrough remain low," said Thiago Duarte, market analyst at Axi. "Unless the US receives major trade concessions, further de-escalation seems unlikely," he said.
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