Oil prices steadied on Wednesday after rebounding from a sharp sell-off earlier in the week, with investors now focused on the upcoming U.S.-China trade talks in Switzerland.
By 10:07 a.m. ET (1407 GMT), Brent crude futures were down 11 cents, or about 0.18%, at $62.04 per barrel, while U.S. West Texas Intermediate crude was also 11 cents lower, or 0.19%, at $58.98 per barrel.
The U.S. and China are scheduled to meet in Switzerland, marking a potential first step toward resolving a trade war that has disrupted the global economy. Hopes surrounding the trade talks have been high, although both oil benchmarks had plunged to four-year lows earlier this week after OPEC+ decided to accelerate output increases, raising concerns of oversupply amid growing demand worries due to U.S. tariffs.
Some U.S. producers have indicated they may reduce spending, suggesting that U.S. oil output could have peaked, which has contributed to the market’s recent uptick. Additionally, the OPEC production increase at the weekend was largely factored into the market, preventing further immediate price movements.
The U.S.-China trade talks follow weeks of escalating tensions between the two largest economies, with tariffs on imports rising sharply. However, volatility is expected to persist due to rapid increases in OPEC+ supply and unpredictable U.S. policy decisions. Geopolitical risk also remains high as tensions escalate in the Middle East, particularly between Israel and the Houthis.
U.S. government data on crude stockpiles is expected later in the day, with analysts forecasting an 800,000-barrel decline in stocks for the previous week. The American Petroleum Institute reported a drop of 4.5 million barrels for the week ending May 2, according to its figures released Tuesday.
