Oil prices dipped on Friday, as the United States and China resumed trade talks.
Brent crude futures were down 0.31% to US$65.14, as of 3:25 pm AEST. West Texas Intermediate crude fell 0.33% to $63.16.
Despite the daily drop, oil prices are set to rise across the week after two consecutive weeks of declines. Brent crude was trading at US$63.88 at the start of the week, while West Texas Intermediate was at $61.92.
U.S. President Donald Trump and Chinese President Xi Jinping have agreed to in-person trade negotiations, after speaking by phone. These are the first direct talks Trump and Xi have held since Trump took office in January.
According to Trump, the call lasted around 90 minutes, and was “focused almost entirely on trade”. Trump had repeatedly said he hoped to speak with Xi in recent weeks, and China’s embassy in the U.S. said the call was held at Trump’s request.
The two countries struck a trade agreement in May to mutually lower tariffs. However, the discussions were stalled as U.S. and Chinese officials accused each other of violating the deal by declining to end export and sales restrictions.
Negotiators from the U.S. and China will meet in the coming days, Trump wrote, with Xi also inviting Trump to visit China.
“With oil prices rising and natural gas prices falling, investors need to tread carefully,” wrote Finimize analysts. “These mixed market movements underscore broader volatility in the energy sector, with effects extending beyond oil and gas to utilities and investments.”
