LONDON: Oil prices were stable on Monday as investors weighed up uncertainty over trade talks between the U.S. and China, clouding the outlook for global growth and fuel demand, as well as the prospect of OPEC+ raising supply.
Brent crude futures were down 15 cents, or 0.22%, at $66.72 a barrel, as of 1204 GMT. U.S. West Texas Intermediate crude shed 16 cents, or 0.25%, to $62.86 a barrel.
Brent futures rose marginally in the previous two sessions, but nonetheless marked a week-on-week decrease of over 1% on Friday on concerns about the impact of tariffs on the global economy.
The U.S.-China trade war is dominating investor sentiment in moving oil prices, said analyst John Evans of brokerage PVM, superseding nuclear talks between the U.S. and Iran and discord within the OPEC+ coalition.
Markets have been rocked by conflicting signals from U.S. President Donald Trump and Beijing over what progress was being made to de-escalate a trade war that threatens to sap global growth.
Oil prices drop on tariff worry and rising supplies
In the latest comment from Washington, U.S. Treasury Secretary Scott Bessent on Sunday did not back Trump’s assertion that negotiations with China were under way. Earlier, Beijing denied any talks were taking place.
Some members of the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, are expected to suggest that the group accelerates oil output hikes for a second consecutive month when they meet on May 5.
“Sentiment has turned more bearish since our forecast last month with OPEC+’s more aggressive unwind – and accompanying doubts about unity within the cartel – the key change,” said BNP Paribas analyst Aldo Spanjer in a note.
BNP Paribas expects Brent in the high $60s per barrel in the second quarter of this year, the note said.
Meanwhile, Iranian Foreign Minister Abbas Araqchi said he remained “extremely cautious” about the success of the negotiations, as nuclear talks between Iran and the United States in Oman which continue this week.
In Iran, a powerful explosion at its biggest port of Bandar Abbas has killed at least 40, with more than 1,200 people injured, state media reported on Sunday.
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