Oil prices were stable on Monday as investors awaited U.S.-China trade talks in London in the hope that a deal could boost the global economic outlook and subsequently fuel demand.
Brent crude futures gained 11 cents, or 0.2%, to $66.58 a barrel by 1312 GMT while U.S. West Texas Intermediate crude rose by 6 cents, or 0.1%, to $64.64.
Brent rose 4% last week and WTI 6.2% as the prospect of a U.S.-China trade deal boosted risk appetite for some investors.
U.S. President Trump and China’s leader Xi Jinping spoke on the telephone on Thursday before U.S. and Chinese officials meet in London on Monday in an effort to calm trade tensions between the two nations.
A trade deal between the U.S. and China could support the global economic outlook and in turn boost demand for commodities including oil.
Monday’s talks could dampen the impact on prices of a slew of Chinese data releases, said IG market analyst Tony Sycamore.
Chinese export growth slowed to a three-month low in May as U.S. tariffs curbed shipments while factory gate deflation deepened to its worst in two years, heaping pressure on the world’s second-largest economy at home and abroad.
“Bad timing for crude oil, which was testing the top of the range and knocking on the door of a technical break above $65,” Sycamore said, referring to WTI prices.
The data also showed that China’s crude oil imports declined in May to the lowest daily rate in four months as state-owned and independent refiners began planned maintenance.
The prospect of a potential China-U.S. trade deal outweighed concern over the price impact from increased output by the OPEC+ group of oil producers next month.
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