Oil prices fell after posting their third consecutive weekly decline, as traders assessed signs of easing trade tensions between the United States and China.
Brent crude traded near $61 a barrel, while West Texas Intermediate crude fell toward $57.
A new round of US-China trade talks is scheduled to take place this week, after US President Donald Trump expressed optimism about the possibility of reaching an agreement, indicating that the high tariffs he threatened to impose on China were unsustainable.
Pressure on prices despite declining tensions
Meanwhile, China's economy slowed for the second consecutive quarter, as strong export gains were offset by declining consumer and business spending.
Oil futures are heading for their third monthly loss, under increasing pressure from an expected supply surplus through 2026, which the International Energy Agency predicted last week would be larger than previously estimated. However, Ukrainian attacks on Russian energy infrastructure could lead to temporary price increases.
Trump plans new meeting with Putin
In addition, Trump said last week that he plans to hold a second meeting with Russian President Vladimir Putin aimed at ending the war in Ukraine, although previous talks have not achieved tangible progress toward halting the fighting. Citigroup predicted that if the conflict de-escalates, oil could fall to around $50 a barrel.
Some market indicators point to weak demand. The spot Brent crude spread, the difference between the two nearest contracts, remains in a bullish forward pattern but has narrowed to 15 cents. In contrast, the spread between the two nearest December contracts shifted to a bearish contango last week.
