Latest news with #GaoMingyu
Time of India
11 hours ago
- Business
- Time of India
US-China trade negotiations: Oil prices steady as investors eyes trade talks in London; Brent holds above $66
Oil prices remained steady on Monday following last week's gains, as markets awaited the outcome of renewed US-China trade negotiations in London. Brent remained above $66 per barrel following a 4% increase last week, with West Texas Intermediate hovering near $65. Tired of too many ads? go ad free now US and Chinese negotiators are scheduled to meet in London on Monday for the first round of talks under the revived economic and trade consultation mechanism, raising hopes of easing tensions between the world's two largest economies. The announcement came after a rare phone call between the two nations' top leaders on Thursday, as both sides face growing pressure to ease tensions—especially amid China's export curbs on rare earths disrupting global supply chains. "The meeting should go very well," US President wrote on Truth Social on Friday afternoon. "Thank you for your attention to this matter!" he added. Oil prices recorded their first weekly increase in three weeks following the announcement. London crude prices have declined by 11% this year, reflecting concerns that intensifying trade disagreements could impede global growth and energy consumption. Simultaneously, OPEC+ has increased production more rapidly than expected, fuelling concerns about potential oil surplus in the latter half of the year affecting prices. Oil price volatility has moderated since mid-May, despite downward pressure during Trump's second term. Market participants are evaluating multiple factors, including positive developments in trade negotiations, increased fuel demand during summer travel in the northern hemisphere, alongside potential risks stemming from situations in Iran and Russia. The outcome of the upcoming UK meeting could play a key role in shaping market sentiment amid ongoing trade tensions, Gao Mingyu, Beijing-based chief energy analyst at SDIC Essence Futures Co told Bloomberg. Tired of too many ads? go ad free now "If the UK meeting continues to signal optimism, it could weaken the negative economic impact of the trade war," the analyst noted. "After the short-term bearish impact of OPEC+'s July ouptut hike was digested, improving macro sentiment, stronger seasonal demand, and lingering geopolitical risks have all provided support," she added. Since mid-May, oil futures have moved within a narrow $4 range, while volatility has dropped to its lowest levels since early April. At the same time, Brent crude's prompt spread has widened into backwardation, a market pattern that signals stronger near-term demand.
Mint
5 days ago
- Business
- Mint
Oil Steadies With Focus on Canada Wildfires, US Crude Stockpiles
Oil steadied after a two-day gain as rains slowed the growth of some blazes which had disrupted Canadian crude production. Brent traded around $65 a barrel after closing at a three-week high on Tuesday, while West Texas Intermediate was near $63. One Canadian operator restarted a site after shutting down last week, with wildfires halting about 7% of output at one stage in the world's fourth-largest producer. Separately, the American Petroleum Institute reported US crude inventories dropped by 3.28 million barrels last week, according to a person familiar with the figures. That would be the biggest draw since March if confirmed by official data later on Wednesday. Oil rose at the start of the week after a decision by OPEC to raise production in July was in line with expectations, easing concerns over a bigger hike. However, prices are still down about 12% this year on fears around a looming supply glut, and worries that US-led trade wars could hurt demand. 'In the short term, the market shows a slightly bullish trend amid volatility,' said Gao Mingyu, Beijing-based chief energy analyst at SDIC Essence Futures Co. 'But OPEC 's rapid output increase makes it difficult for the supply-demand tightness that's driven by seasonal and geopolitical factors to persist.' Saudi Arabia led increases in OPEC oil production last month as the group began its series of accelerated supply additions, according to a Bloomberg survey. Nevertheless, the hike fell short of the full amount the kingdom could have added under the agreements. The OECD, meanwhile, cut its outlook for global economic growth on Tuesday, with the US among the hardest hit. President Donald Trump is pushing ahead with his tariffs, signing a directive that doubles rates on steel and aluminum. To get Bloomberg's Energy Daily newsletter in your inbox, click here. This article was generated from an automated news agency feed without modifications to text.
