Oil prices hit multi-week highs amid US-China trade talks
[NEW YORK] Oil prices hit multi-week highs on Monday, buoyed by a weaker US dollar, while investors awaited news from US-China trade talks in London in hopes a deal could boost the global economic outlook and subsequently fuel demand.
Brent crude futures settled 57 cents higher, or 0.9 per cent, to US$67.04 a barrel. During the session, the benchmark rose to US$67.12 a barrel, the highest since April 28.
US West Texas Intermediate crude rose 71 cents, or 1.1 per cent, to US$65.29. The contract reached US$65.38 a barrel during the session, the highest since April 4.
A weaker US dollar gave some support to oil prices, as the dollar index dropped 0.3 per cent, making oil cheaper for holders of other currencies.
Last week, Brent rose 4 per cent and WTI gained 6.2 per cent as the prospect of a US-China trade deal boosted risk appetite for some investors.
'Much of this advance appears technically driven and such rallies can easily subside without new bullish headlines,' analysts at energy advisory firm Ritterbusch and Associates said in a note. 'Much attention will be given to the ongoing US-China trade talks.'
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
US President Donald Trump and China's leader Xi Jinping spoke by telephone on Thursday before US and Chinese officials met in London on Monday to calm trade tensions between the two nations.
A trade deal between the United States and China could support the global economic outlook and in turn boost demand for commodities including oil.
Monday's talks could dampen the impact on prices of Chinese data releases, IG market analyst Tony Sycamore said.
Chinese export growth slowed to a three-month low in May as US tariffs curbed shipments while factory gate deflation deepened to its worst in two years, heaping pressure on the world's second-largest economy at home and abroad.
'Bad timing for crude oil, which was testing the top of the range and knocking on the door of a technical break above US$65,' Sycamore said, referring to WTI prices.
The data also showed that China's crude oil imports declined in May to the lowest daily rate in four months as state-owned and independent refiners began planned maintenance.
The prospect of a potential China-US trade deal outweighed concern over the price impact from increased output by the Opec+ group of oil producers next month.
The Organization of the Petroleum Exporting Countries' oil output rose in May by less than the volume planned, a Reuters survey found, as Iraq made further cuts to compensate for earlier pumping above target and Saudi Arabia and the United Arab Emirates made smaller hikes than allowed.
Opec pumped 26.75 million barrels per day last month, up 150,000 bpd from April's total, the survey showed on Monday, with Saudi Arabia making the largest increase. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
an hour ago
- CNA
CNA938 Rewind - US-China trade talks in London
CNA938 Rewind The U.S and China are set to resume trade talks in London. U.S Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will meet with Chinese Vice Premier He Lifeng. It's the second round of such negotiations between the world's two biggest economies. Andrea Heng and Hairianto Diman speak with Chris Humphrey, Executive Director, EU-ASEAN Business Council, on the issues coming out from the meeting.
Straits Times
an hour ago
- Straits Times
US-China trade talks to resume for a second day
U.S. Treasury Secretary Scott Bessent and Chinese vice premier He Lifeng pose for a photo with U.S. Trade Representative Jamieson Greer, U.S. Secretary of Commerce Howard Lutnick, Chinese Commerce Minister Wang Wentao, and China's International Trade Representative and Vice Minister of Commerce Li Chenggang, in London, Britain June 9, 2025. United States Treasury/Handout via REUTERS THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY LONDON - Top U.S. and Chinese officials will resume trade talks for a second day in London on Tuesday, hoping to secure a breakthrough over export controls for goods such as rare earths that have threatened a global supply chain shock and slower economic growth. Investors are hoping that the two superpowers can improve ties after the relief sparked by a preliminary trade deal agreed in Geneva last month gave way to fresh doubts after Washington accused Beijing of blocking exports that are critical to sectors including autos, aerospace, semiconductors and defence. The talks come at a crucial time for both economies, with customs data showing that China's exports to the U.S. plunged 34.5% in May, the sharpest drop since February 2020, when the outbreak of the COVID-19 pandemic upended global trade. While the impact on U.S. inflation and the jobs market has so far been muted, the dollar remains under pressure from U.S. policymaking. The two sides met at the ornate Lancaster House in the British capital on Monday to discuss disagreements around the Geneva deal, and are due to resume talks early on Tuesday before both sides are expected to issue updates. The U.S. side is led by U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer, while the Chinese contingent is helmed by Vice Premier He Lifeng. The inclusion of Lutnick, whose agency oversees export controls for the U.S., is one indication of how central rare earths have become. China holds a near-monopoly on rare earth magnets, a crucial component in electric vehicle motors. Lutnick did not attend the Geneva talks at which the countries struck a 90-day deal to roll back some of the triple-digit tariffs they had placed on each other. Trump's often erratic policymaking on tariffs has roiled global markets, sparked congestion and confusion in major ports, and cost companies tens of billions of dollars in lost sales and higher costs. The second round of meetings between the two sides comes four days after Trump and Xi spoke by phone, their first direct interaction since Trump's January 20 inauguration. Following the call Trump said Xi had agreed to resume shipments to the U.S. of rare earths minerals and magnets, and Reuters reported that China has granted temporary export licenses to rare-earth suppliers of the top three U.S. automakers. But tensions remain high over the export controls, after factories around the world started to fret that they would not have enough of the materials they need to keep operating. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
an hour ago
- Business Times
China's WeRide, Malaysia's Causeway Link among firms bidding to run driverless public buses in S'pore
[SINGAPORE] The local offshoot of Chinese self-driving technology company WeRide and a consortium led by Malaysian bus operator Handal Indah, also known as Causeway Link, are among four companies that have submitted bids to participate in a trial of autonomous public bus services here. The Land Transport Authority (LTA) called a tender in January seeking proposals for the trial, which is slated to start from mid-2026, on two public bus routes – one in Marina Bay and Shenton Way, and the other in one-north in Buona Vista. The tender, which closed on June 9 and is expected to be awarded by the end of 2025, drew four submissions in total. Apart from WeRide (Singapore) and the Handal Indah consortium, the other two tenderers are vehicle distributor Cycle & Carriage Automotive and another consortium led by MKX Technologies. According to business records, MKX Technologies was incorporated in Singapore in April and has two shareholders. The majority owner is X Star Technology, a Singapore subsidiary of Chinese online vehicle financing company Yixin Group, and the minority owner is MK.X, a Japanese electric car-sharing company. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Government procurement website GeBiz did not state the other companies that make up the Handal Indah and MKX Technologies consortiums. The Straits Times has contacted WeRide, Handal Indah, Cycle & Carriage and X Star Technology for comment. LTA previously said that it will start the trial by buying six autonomous buses with at least 16 seats and deploying them on bus services 400 and 191. This is so the authority can assess the feasibility of self-driving technology for public bus services and gain operational insights. Former transport minister Chee Hong Tat had said that the use of autonomous vehicles would help to address pressing manpower challenges in the public transport sector, where it has been difficult to hire drivers. LTA's plan is for the autonomous public buses to operate alongside existing manned buses for an initial three-year period. Depending on how they perform, LTA may buy up to 14 more autonomous buses to expand the trial to two more routes later. LTA said it chose to trial the self-driving buses on services 400 and 191 because they are shorter and simpler routes. The authority is also taking a phased approach so it can thoroughly assess the reliability of autonomous vehicle technology while ensuring public safety. During the initial phase of the trial, the self-driving buses will have bus drivers on board to act as safety operators, and the buses will be monitored in real time by LTA. Extra safeguards, such as requiring all passengers to be seated and to wear seat belts, will be put in place, and a remote safety operator will be allowed to take over the supervisory role only after at least six months of testing. LTA had said that the autonomous vehicle developer selected for the trial will have to work with public transport operator SBS Transit, which runs services 400 and 191, to come up with operational concepts and plans for operating the autonomous public buses. The authority said it will evaluate the proposals it receives based on the maturity of the technology, the record of the autonomous vehicle developer and its ability to meet operational needs. Other factors being considered include the supporting infrastructure, such as fleet management and vehicle charging systems. WeRide, which holds driveless vehicle operator permits in China, the US, the United Arab Emirates and France, is no stranger to self-driving vehicle operations in Singapore. Since April 2024, it has been running an autonomous shuttle bus service at integrated resort Resorts World Sentosa. Two of WeRide's driverless road sweepers have also been on trial on public roads in the Marina coastal area since October 2024. Handal Indah has some autonomous vehicle know-how, too, via company founder Lim Han Weng's other business, Yinson Holdings. In 2021, Yinson backed Singapore-based autonomous vehicle start-up MooVita, which today operates a driverless shuttle bus service at Ngee Ann Polytechnic – albeit with a safety driver on board. THE STRAITS TIMES
