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.
ADVERTISEMENT 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.
ADVERTISEMENT 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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Hyundai Motor has rare earths stockpile that could last about a year
Hyundai Motor has a rare earths stockpile that can last about a year and it does not expect any near-term impact from global supply chain disruptions caused by China's export curbs, said a person who attended a company investor call. China's decision in April to restrict exports of a wide range of rare earths and related magnets has tripped up the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. The stockpiling by Hyundai, the world's No.3 automaker along with its affiliate Kia Corp, indicates it is better-placed than many competitors to withstand restrictions that have already impacted production or the supplier network of companies including Ford and BMW. A Hyundai investor relations official said the South Korean automaker had "far more wiggle room" than rivals with regard to rare earths-related supply chain issues affecting the industry, according to the attendee on the investor call, which was not open to the public. The official told investors Hyundai's efforts to diversify supply chains and improve procurement had succeeded and the company expected to be able to produce electric vehicles or hybrid cars without disruptions "for at least about one year," the attendee said. Hyundai also significantly boosted its rare earths inventories during a recent period when China had slightly relaxed its export restrictions, the official said, according to the attendee who spoke on condition of anonymity because the call was private. The South Korean automaker's stockpile of the key minerals had not been reported previously. It was not clear whether the inventory was solely stockpiled by Hyundai and its affiliate Kia or also included stocks held by their suppliers. "We continuously evaluate market conditions to ensure operational stability and maintain a diversified global supply chain," Hyundai said. "As part of our standard business practices, we maintain appropriate inventory levels to support uninterrupted production." China produces around 90 per cent of the world's rare earths, which are essential for the production of vehicles, especially electric vehicle motors. Hyundai Motor Group also holds about a one-year inventory of rare earths-related magnets needed for its mainstay EVs and hybrid vehicles, said a person familiar with the matter, declining to be named due to the sensitivity of the subject. China's dominance of the critical mineral industry is increasingly viewed as a key point of leverage for Beijing in the trade war sparked by US President Donald Trump's tariffs. US-China trade talks were set to extend to a second day in London on Tuesday as top economic officials from the world's two largest economies sought to defuse a bitter dispute that has widened from tariffs to restrictions over rare earths.
Time of India
33 minutes ago
- Time of India
European shares stable as markets eye Sino-US trade talks
European stocks were steady on Tuesday, shrugging off modest losses from the previous session, as investors stayed on edge awaiting fresh signals from the second day of tense U.S.-China trade negotiations. The continent-wide STOXX 600 held its ground at 553.12 points, as of 0703 GMT. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Top Picks: The $45 "Luxury" Beauty Serum Experts Swear By Best of Beauty Get Coupon Undo The spotlight remains on the talks in London between the world's two biggest economies, as investors eagerly watch for any signs of progress or a thaw in relations. Play Video Play Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 31:09 Loaded : 1.36% 00:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 31:09 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Ads By Google Ad will close in 25 Skip Ad U.S. President Donald Trump on Monday put a positive spin on the talks, without divulging any details on how the trade war, that has threatened to disrupt global supply chains, could de-escalate. Gains in automakers, which rose 1%, were offset by financial services and industrial shares, which fell 0.8% and 0.4%, respectively. Live Events Among stocks, Novo Nordisk gained nearly 2% after a report said activist hedge fund Parvus Asset Management is building a stake in the drugmaker. Bellway gained 4% after the British homebuilder raised its forecast for full-year volume production. Shares of Aberdeen gained 5% after upgraded the fund manager's stock to "overweight" from "neutral".
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42 minutes ago
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Oil Rises on Trade-Talk Optimism, Signs of Near-Term Tightness
(Bloomberg) -- Oil ticked higher, rising for a fourth straight day, on investor optimism around extended trade talks between the US and China, and signs of near-term tightness in the physical market. Global benchmark Brent rose above $67 a barrel, while West Texas Intermediate topped $65. US Commerce Secretary Howard Lutnick said that initial discussions in London with officials from Beijing had been 'fruitful'. The negotiations are slated to continue on Tuesday. Crude has declined this year on fears that persistent global trade tensions will sap economic growth and crimp energy demand, although progress in the latest US-China talks could ease such concerns and buoy risk assets. Oil has also been hurt as the OPEC alliance agreed to add production back to the market at a faster-than-expected clip, spurring forecasts for a glut. 'Crude has preemptively priced in a degree of success in the US-China trade talks,' said Vandana Hari, founder of Vanda Insights in Singapore. 'We may not know the outcome for another day, and I expect prices to go into a holding pattern until then.' Oil's pricing structure points to near-term tightness, although the reverse is the case further out. Brent's prompt spread is 81 cents a barrel in backwardation, a bullish pattern, with the nearest contract trading at a premium to the next in sequence. That's up from 48 cents about a month ago. On the geopolitical front, President Donald Trump expressed concern that Iran was seeking too much in a potential nuclear deal, including the ability to enrich uranium. He described the Iranian negotiators as tough but good. Talks will continue on Thursday, according to Trump. To get Bloomberg's Energy Daily newsletter in your inbox, click here. More stories like this are available on
