Quick overview

---

Washington and Beijing are the world’s two largest oil consumers, making crude prices particularly sensitive to their economic outlook.

Oil prices fell on Tuesday as traders exercised caution during the second day of the latest round of trade negotiations between the United States and China.

Brent crude for August delivery slipped 0.25% to $66.87 per barrel, while U.S. benchmark West Texas Intermediate (WTI) for July delivery dropped 0.48% to $64.98 per barrel.

Trade Talks: Beijing and Washington

Talks between Washington and Beijing continued Tuesday in London, aiming to build on the tariff truce reached a month ago in Geneva. The economic trajectory of both countries has a significant impact on oil demand, amplifying the market’s sensitivity to the progress of negotiations.

U.S. Commerce Secretary Howard Lutnick said on Tuesday that the trade discussions with China in London were “going well” and were expected to continue throughout the day.

“We talked all day yesterday and we expect to spend the whole day today as well. The talks are going well; we’re spending a lot of time together,” Lutnick told reporters.

The delegations met for about seven hours at Lancaster House and were expected to resume discussions later in the evening, sources close to the negotiations told EFE. The talks could potentially extend into Wednesday.

Oil Outlook

Meanwhile, markets are also monitoring the European Commission’s new proposed sanctions against Russia over the war in Ukraine. The latest measures target Russia’s oil revenues, banking sector, and military-industrial complex.

Traders are also awaiting the latest U.S. crude inventory data. The American Petroleum Institute is expected to release its weekly estimates later today, followed by official figures from the U.S. government on Wednesday, both of which are projected to show a modest increase in commercial stockpiles.