Oil prices held steady on Monday as investors assessed ongoing uncertainty surrounding U.S.-China trade relations and the potential for increased oil supply from OPEC+ members.
Brent crude futures slipped 15 cents, or 0.22%, to $66.72 a barrel by 1204 GMT. U.S. West Texas Intermediate (WTI) crude futures were down 16 cents, or 0.25%, at $62.86 a barrel.
While Brent crude had posted slight gains in the previous two sessions, it ended last week more than 1% lower, weighed down by concerns over the economic impact of rising tariffs.
Investor sentiment has been largely driven by developments in the U.S.-China trade negotiations. Markets reacted to mixed signals, with U.S. officials offering conflicting statements about the status of talks. U.S. Treasury Secretary Scott Bessent did not confirm President Donald Trump’s earlier claim that discussions were ongoing, while Beijing also denied that talks had resumed.
Meanwhile, attention is turning to the upcoming OPEC+ meeting on May 5, where some member countries are expected to propose accelerating oil output increases for a second straight month. Concerns remain about the unity of the group as they navigate production targets amid fluctuating demand forecasts.
Adding to geopolitical tensions, nuclear negotiations between Iran and the United States continue this week in Oman. Iranian Foreign Minister Abbas Araqchi expressed caution regarding the prospects for a breakthrough.
In Iran, a major explosion at the country’s largest port, Bandar Abbas, resulted in at least 40 fatalities and injured more than 1,200 people, according to state media reports.
Despite market volatility, oil prices are expected to remain relatively stable in the near term, with Brent crude likely to stay in the high $60s range through the second quarter of the year.
