Oil prices inch up as US conduct talks with China
Oil prices edged up on Monday as the dollar lost ground while investors await the results of US-China trade talks in London in hopes of reaching a deal that would boost global economic performance and fuel demand.
Brent futures rose 44 cents, or 0.7% to $66.91 a barrel, while US West Texas rose 59 cents, or 0.9% to $65.17.
Brent rose 4% last week, while US crude rose 6.2% on a surging risk appetite amid hopes for US-China trade talks.
Earlier today in London, The US and China started new trade talks following the crucial Trump-Xi phone talk last week, which helped accelerate the momentum of negotiations between both sides.
However, the prices remain under pressure after data showed Chinese exports fell to a three-month low in May, while producer prices hit a two-year nadir.
Such a weak performance for the Chinese economy doesn’t bode well for the prospects of fuel demand in the world’s largest fuel importer.
Recent data already showed China’s crude imports fell in May to a four-month low as refining companies start scheduled maintenance shutdowns.
OPEC+ Production
Prices were pressured for weeks due to OPEC+ decision to raise output in July once more after similar decisions for May and June.
However, a Reuters survey showed OPEC production rose in May by less than expected, as Iraq reduced its output to compensate for recent increases, while Saudi Arabia and the UAE made small production hikes below their limits.
Yen ekes out gains after GDP data
The yen rose against most major rivals on Monday following a batch of positive data.
Japan’s GDP was unchanged in the first quarter, beating estimates of a 0.2% contraction.
Lending by Japanese banks rose 2.4% last month, slightly above estimates.
On trading, the dollar fell 0.2% against the yen as of 20:23 GMT to 144.5.
Aussie
The Australian dollar rose 0.5% against its US counterpart as of 20:39 GMT to $0.6525.
US Dollar
The dollar index fell 0.2% as of 18:07 GMT to 98.9, with a session-high at 99.2, and a low at 98.8.
High-level talks between US and Chinese officials commenced today in London, with the hopes of reaching some sort of an initial agreement on tariffs and trade.
Markets also closed await US consumer prices data later on Wednesday, followed by producer prices data on Friday to gather more clues on the path ahead for the Fed’s interest rates.
Gold climbs amid uncertainty on the trade talks
Gold prices rose on Monday as the dollar fell against most major rivals with traders assessing the latest US-China trade talks.
High-level talks between US and Chinese officials commenced today in London, with the hopes of reaching some sort of an initial agreement on tariffs and trade.
Markets also closed await US consumer prices data later on Wednesday, followed by producer prices data on Friday to gather more clues on the path ahead for the Fed’s interest rates.
Otherwise, the dollar index fell 0.2% as of 18:07 GMT to 98.9, with a session-high at 99.2, and a low at 98.8.
On trading, gold spot prices rose 0.3% as of 18:08 GMT to $3356.8 an ounce.
Wall Street gains ground as US-China talks resume
Most US stock indices, except the Dow, rose on Monday as the US-China trade talks resumed.
High-level talks between US and Chinese officials commenced today in London, with the hopes of reaching some sort of an initial agreement on tariffs and trade.
Markets also closed await US consumer prices data later on Wednesday, followed by producer prices data on Friday to gather more clues on the path ahead for the Fed’s interest rates.
On trading, Dow Jones fell 0.1% as of 17:17 GMT, or 12 points to 42,750 points, while S&P 500 shed 0.1%, or 6 points to 6006 points, as NASDAQ added 0.2%, or 45 points to 19,575 points.