Oil prices eased in Asian trade on Wednesday as markets evaluated the outcome of recent trade discussions between the United States and China, while concerns about weak Chinese demand and rising OPEC+ production continued to weigh on sentiment.
By 2:30 pm AEST (4:30 am GMT), Brent crude futures were down US$0.10, or 0.2%, at US$66.77 per barrel. U.S. West Texas Intermediate (WTI) crude slipped 2 cents, or 0.1%, to US$64.94 per barrel.
Investors were reacting to news that U.S. and Chinese officials had agreed on a framework to resume their trade truce and address China’s export curbs on rare earth minerals and magnets.
The agreement, announced by U.S. Commerce Secretary Howard Lutnick following two days of negotiations in London, is still awaiting review by President Donald Trump.
In addition to trade developments, the market digested the latest Short Term Energy Outlook from the U.S. Energy Information Administration (EIA), which projects a decline in U.S. domestic crude output in 2026 for the first time since 2021.
Production is expected to fall to 13.37 million barrels per day (mb/d) from an estimated 13.42 mb/d in 2025.
The report follows warnings from several U.S. shale producers that persistently low oil prices could hamper output. The EIA has revised its estimate for U.S. shale production in 2026 to 11.09 mb/d, compared with a previous forecast of 11.25 mb/d.
Toward the end of the day, attention will turn to the EIA’s weekly crude inventory report. Preliminary data from the American Petroleum Institute indicated U.S. crude stocks declined by 370,000 barrels last week, versus expectations of a 700,000 barrel build.
