Oil Steadies As Traders Await Next Moves In China, US-Iran Talks

Oil was little changed as traders parsed the latest signals in the trade war, including China's efforts to support its tariff-hit economy, and weighed geopolitical developments on Iran.

Brent traded near $67 a barrel after dipping 1.6% last week. Treasury Secretary Scott Bessent told ABC News that talks were ongoing with US trading partners, and “some of those are moving along very well, especially with the Asian countries.”

In China — the top crude importer — officials vowed to provide more support for exporters affected by US President Donald Trump's tariffs, while denying any trade talks with Washington. Authorities are “fully confident” of reaching the expansion target of about 5% in 2025, Zhao Chenxin, vice chairman of the National Development and Reform Commission, told a briefing.

Brent crude is headed for a monthly slump of more than 10%, the biggest since 2022, after touching a four-year low. Futures have been burdened by concerns that the US-led trade war will stifle economic activity and hurt energy demand. At the same time, the OPEC+ cartel has compounded bearish sentiment by ramping up idled production. The group will hold discussions on May 5 to weigh output plans for June.

The market's next cues could come from a raft of major economic data this week, including US growth and payrolls figures. Investors will also get a chance to hear views on the global crude market outlook this week, with oil supermajors BP Plc, Shell Plc, Chevron Corp. and Exxon Mobil Corp. reporting earnings.

“Near-term crude looks decent despite bearish sentiment,” aided by low onshore crude inventories, said Aldo Spanjer, head of energy strategy at BNP Paribas. “Through the third quarter and the fourth quarter, we see enough stock build to take some of the bullish pressure off, while increasing non-OPEC+ supplies lengthen balances further.”

On the geopolitical front, the US and Iran reported signs of progress in talks on a deal over Tehran's nuclear program, and the two sides agreed to meet again in Europe. Separately, an explosion at the nation's Shahid Rajaee port on Saturday left dozens dead. The major hub has a strategic location on the Strait of Hormuz, a key conduit for the global oil trade.

Prices:

• Brent was little changed at $66.85 a barrel at 8:55 a.m. in New York.

• WTI traded at $63.03 a barrel.