Oil prices steadied on Monday as optimism over a possible trade deal framework between the United States and China helped counter persistent concerns about weak global crude demand.
Brent crude futures slipped by 14 cents, or 0.2%, to $65.70 per barrel at 12:27 GMT, while U.S. West Texas Intermediate (WTI) crude dropped 9 cents to $61.41. Both benchmarks had fallen about 1% earlier in the session.
U.S. Treasury Secretary Scott Bessent said officials from both countries had reached a “substantial framework” that could prevent 100% tariffs on Chinese goods and delay China’s rare-earth export restrictions. The news lifted global stocks while safe-haven assets like gold and bonds retreated.
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Despite renewed optimism, analysts remain cautious. “Oil traders are far more skeptical about trade talks than equity investors. A positive negotiating atmosphere doesn’t guarantee stronger demand,” said John Evans, analyst at PVM Oil Associates.
Brent crude hit its lowest level since May earlier this month amid sluggish demand. However, stronger-than-expected U.S. consumption and fresh sanctions on Russia have helped stabilize prices. “The hope for bulls is that U.S. demand keeps rising; otherwise, the drift lower may continue,” noted IG Bank’s Chris Beauchamp.
Iraq’s oil minister, Hayan Abdel-Ghani, said Monday that the country is in talks to adjust its OPEC production quota within its 5.5 million-barrel daily capacity.
OPEC and its allies have recently reversed production cuts to regain market share, a move that has kept oil prices from rising sharply.
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Meanwhile, Iraq confirmed that a weekend fire at its Zubair oilfield had not affected exports.
Last week, Brent and WTI jumped 8.9% and 7.7%, respectively, boosted by U.S. and EU sanctions targeting Russian oil. “There will likely be ongoing challenges for Russian crude exports, depending on how tightly sanctions are enforced,” said Janiv Shah of Rystad Energy.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
