Crude held firm after Washington and Beijing agree to limited trade deal
Oil prices held largely steady on Thursday as investors weighed the implications of a potential trade truce between the United States and China
Oil prices held largely steady on Thursday as investors weighed the implications of a potential trade truce between the United States and China, following a meeting between US President Donald Trump and Chinese leader Xi Jinping in South Korea.
Brent crude rose 8 cents, or 0.1%, to settle at $65.00 a barrel.
WTI gained 9 cents, or 0.1%, to close at $60.57.
President Donald Trump agreed to reduce tariffs on Chinese goods to 47% from 57% under a one-year deal, in exchange for Beijing resuming US soybean purchases, maintaining rare earths exports, and intensifying efforts to curb illicit fentanyl shipments.
Market participants viewed the move as a de-escalation of trade tensions rather than a fundamental shift in bilateral relations. Adding to the mixed sentiment, the US Federal Reserve cut interest rates on Wednesday, as expected, but hinted that it could be the final adjustment this year amid disruptions caused by the ongoing government shutdown.
Both crude benchmarks were on track to post losses of around 3% for October, marking a third consecutive month of declines amid persistent oversupply concerns. This followed a short-lived rally of about 7% last week driven by US sanctions on Russia’s two largest oil firms, which has since largely unwound.
Written: Farid Muzaffar