Brent largely stable amid uncertainty around US-China trade war

The front-month ICE Brent contract has gained by $0.25/bbl on the day from Friday, to trade at $66.75/bbl at 09.00 GMT.

IMAGE: Oil pump jacks. Getty Images

Upward pressure:

Brent crude’s price has moved higher over the weekend as market participants continued to monitor trade tensions between two of the largest oil consumers of the world – the US and China.

Last week, the US administration said that it was willing to lower tariffs on Beijing, according to several media reports.

A partial easing of tariff tensions between the two countries can help soothe market worries, according to market analysts. However, uncertainty over a full resolution persists.

“The market awaits definitive news on the prospect of a thaw in the US-China tariffs battle,” Vanda Insights founder and analyst Vandana Hari said.

Downward pressure:

Brent’s price felt some downward pressure as leaders from the US and Iran held a third round of negotiations in Oman on Saturday. The meeting focused on reimposing restrictions on Tehran’s uranium enrichment program, Reuters reports.

“The US and Iran characterised their third round of talks on a potential new nuclear deal in Oman on Saturday as productive,” Hari said.

Oil analysts and traders are closely monitoring the talks for signs of any progress that could potentially lead the Trump administration to lift some sanctions on Iranian oil and bring more supply back to the market.

By Aparupa Mazumder

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