Oil prices under pressure today. Why?

Oil prices fell slightly on Tuesday, as investors awaited developments in the US-China trade talks scheduled to be held in Malaysia in the coming days. These developments could determine the direction of global oil prices going forward.

Brent crude fell 0.4% to $60.76 a barrel, while US West Texas Intermediate crude fell by a similar amount to $56.78 a barrel, amid ongoing concerns about weak demand and oversupply in the markets.

Oversupply pressures limit oil price recovery

Analysts indicate that the long-awaited oil oversupply is beginning to appear, pressuring prices and preventing them from achieving strong gains, despite expectations of a relative improvement in global demand during the fourth quarter of the year.

Reduced concerns about new US sanctions on the Russian oil industry also helped calm markets, after US President Donald Trump intensified his efforts to persuade his Ukrainian counterpart, Volodymyr Zelensky, to accept the terms of a peace agreement with Moscow.

Markets anticipate the Trump-Xi meeting

These developments come ahead of the anticipated meeting between Trump and Xi Jinping, which is expected to contribute to easing trade tensions between Washington and Beijing, potentially positively impacting demand for crude oil in global markets.

Any positive progress in the US-China trade talks could give markets a temporary upward push, especially if signs emerge of improved global trade or a return of confidence to the manufacturing sector.

Despite these expectations, crude oil prices remain in a narrow range near $60 per barrel, with investors remaining cautious as they await any clear signals regarding the direction of global trade and oil production in the coming period.