Oil Prices Dip Ahead of U.S.-China Trade Talks in London

Oil prices edged down slightly on Monday as markets turned their attention to high-stakes trade talks between the United States and China set to take place in London later in the day. The minor decline followed a week of strong gains, fueled by optimism that the world’s two largest economies could be moving toward a resolution in their prolonged trade dispute.

Brent crude futures dipped by 11 cents to settle at $64.61 per barrel, while U.S. West Texas Intermediate (WTI) crude slipped 4 cents to $64.54 by 7:28 a.m. WAT. Despite the modest losses, both benchmarks had posted their first weekly gains in three weeks, with Brent climbing 4% and WTI jumping 6.2% last week.

The uptick was largely driven by renewed hopes surrounding U.S.-China relations, as reports confirmed that fresh negotiations were being planned to ease economic tensions that have rattled global markets.

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Investors are keeping a close watch on the London meeting, where three of President Donald Trump’s top economic advisers are set to meet their Chinese counterparts. This marks the official resumption of the U.S.-China economic and trade consultation talks.

Market sentiment was further boosted by better-than-expected U.S. employment data, which suggested continued resilience in the American economy despite external pressures. Stock markets responded positively on Monday, with gains reflecting investor optimism that progress in trade discussions could help stabilize global economic growth.

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While oil prices experienced only a marginal dip, the broader outlook remains cautiously optimistic. Any significant breakthrough in trade negotiations could further buoy energy markets, which have been volatile amid fluctuating geopolitical risks and concerns about global demand.

As the talks unfold, traders and analysts alike will be watching closely—not just for headlines, but for concrete signals that Washington and Beijing are serious about moving past the tariffs and tensions that have defined their recent economic relationship.