Oil prices eased slightly on Wednesday as global markets processed the outcome of US-China trade negotiations, which are still pending final review by President Donald Trump.
At 0644 GMT, Brent crude futures slipped by 15 cents (0.2%) to $66.72 per barrel, while US West Texas Intermediate (WTI) crude dropped 10 cents (0.2%) to $64.88 per barrel.
The softening of crude prices is attributed to multiple factors, including:
- Subdued oil demand from China
- Rising OPEC+ production levels
- Market caution ahead of Trump’s review of the newly proposed US-China trade framework
Following two days of intense discussions in London, US and Chinese officials announced a framework to revive their trade truce and resolve China’s export restrictions on rare earth minerals and magnets. US Commerce Secretary Howard Lutnick confirmed that President Trump will be briefed before any final approval.
Despite the agreement’s potential significance—given that the US and China are the world’s top two economies and oil consumers—analysts say oil traders remain in wait-and-see mode.
“The current [price] corrections can be attributed to a mix of technical profit-taking and caution leading up to the US-China (official) announcement,” said Priyanka Sachdeva, Senior Market Analyst at Phillip Nova.
Until firm policy actions emerge, oil markets are likely to remain range-bound, influenced by geopolitical developments, global demand signals, and OPEC+ supply dynamics.
