Oil prices slipped during Asian trading on Thursday as investors awaited the outcome of crucial United States-China trade talks, hoping for signs that tensions weighing on global growth might ease.
By 4 pm AEDT (5 am GMT), Brent crude futures were down 27 cents, or 0.4%, at US$64.65 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 31 cents, or 0.6%, to US$60.15 per barrel.
U.S. President Donald Trump and Chinese leader Xi Jinping met for nearly two hours at a South Korean air base in Busan.
The outcome of the meeting was not immediately clear, though Trump said earlier this week he expects to reduce U.S. tariffs on Chinese imports in exchange for Beijing’s commitment to restrict exports of precursor chemicals used to produce fentanyl.
The talks come amid a backdrop of heightened market uncertainty, with investors weighing both the potential for a trade breakthrough and the broader outlook for global demand.
Adding some support to sentiment, the U.S. Federal Reserve lowered interest rates on Wednesday as widely expected, though Chair Jerome Powell signalled that it could be the final cut of the year given the ongoing government shutdown and its potential impact on economic data.
Oil’s recent gains were underpinned by a stronger-than-anticipated drawdown in U.S. crude and fuel inventories. According to the Energy Information Administration, commercial crude stockpiles fell by 6.9 million barrels in the past week, far exceeding forecasts for a 200,000-barrel draw.
Despite the upbeat inventory data, both Brent and WTI remain on track for monthly losses of around 3% in October, marking their third consecutive month of declines as traders reassess the global demand outlook.
Market attention is now turning to the upcoming OPEC+ meeting on 2 November, where the alliance is expected to confirm an additional supply increase of 137,000 barrels per day for December.
