(Reuters) – 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 13 cents, or 0.19%, at $66.74 a barrel, as of 0902 GMT. U.S. West Texas Intermediate crude shed 12 cents, or 0.19%, to $62.90 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.
“Market players will remain on the lookout for a thaw in the U.S.-China trade war as an opportunity to buy,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.
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.
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.
Reporting by Robert Harvey in London, by Mohi Narayan in New Delhi and Florence Tan in Singapore; Editing by Lincoln Feast, Sherry Jacob-Phillips and David Evans
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