Oil prices steadied on Thursday as investors turned their attention to a high-stakes meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing, while concerns over the Iran war continued to support crude prices.
Brent crude traded below $106 a barrel after falling 2% in the previous session, while West Texas Intermediate hovered near $101.
Trump, who arrived in Beijing on Wednesday for his first state visit to China in nine years by a U.S. president, is scheduled to meet Xi at the Great Hall of the People on Thursday. The summit comes as Washington and Beijing attempt to stabilise ties against the backdrop of the Middle East conflict and growing concerns over global inflation and trade.
The U.S. president has indicated that trade discussions with China would take priority over talks related to the Iran conflict.
Investor focus has also shifted to how the war could affect global growth, inflation and energy supplies, with markets closely tracking both geopolitical developments and the outcome of the Trump-Xi meeting.
Brent crude for July settlement was little changed at $105.52 a barrel. West Texas Intermediate crude for June delivery was steady at $100.99 a barrel.
Supply Concerns Persist
The conflict involving Iran has tightened global oil supplies, with the International Energy Agency warning that the market could remain "severely undersupplied" until October even if the war ends next month.
Ahead of the summit in Beijing, Washington stepped up pressure on Tehran by threatening banks and sanctioning additional entities linked to Iranian oil sales to China, which remains the largest buyer of Iranian crude.
Iran's exports have also been affected by a U.S. naval blockade targeting the country's ports.
Satellite images reviewed by Bloomberg News showed oil jetties at Iran's Kharg Island export terminal remained empty on Tuesday. No tankers were visible at the facility for a fourth straight satellite observation period.
India Refiners In Focus
Markets are also watching the expiry of a U.S. sanctions waiver that had allowed purchases of Russian oil already at sea.
The waiver is due to lapse this weekend, raising concerns for refiners in India, one of the biggest buyers of Russian crude. India has imported large volumes so far this month.
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