Oil prices held on to recent gains during Asian trade on Monday as investors looked towards upcoming trade talks between the United States and China, with hopes that a breakthrough could improve the global economic outlook and support energy demand.
By 3:25 pm AEST (5:25 am GMT), Brent crude futures edged down by 6 cents or 0.1% to US$66.41 per barrel, while U.S. West Texas Intermediate (WTI) crude slipped 4 cents or 0.1% to $64.53.
Both benchmarks retained the bulk of last week's advances - Brent rose 5.9% and WTI gained 6.2% - marking their first weekly gain in three weeks.
Market sentiment has been lifted by the prospect of a U.S.-China trade resolution, with three of President Donald Trump’s senior aides set to meet Chinese counterparts in London on Monday.
The talks mark the inaugural meeting under the U.S.-China economic and trade consultation mechanism.
Expectations that a trade deal could stimulate economic growth and raise oil consumption have helped offset concerns about increased output from OPEC+, which announced a substantial production hike for July.
In China, economic indicators released Monday highlighted continued stress: export growth slowed to a three-month low in May under the weight of U.S. tariffs, while factory-gate prices posted their sharpest deflation in two years.
