Oil prices drop ahead of U.S.-China trade talks

Oil prices slipped on weak China data on Monday, June 9, 2025, but held on to most of last week’s gains, as investors awaited United States-China trade talks in London later in the day.

Brent crude futures slipped 18 cents, or 0.27%, to $66.29 a barrel by 0644 GMT, while U.S. West Texas Intermediate crude fell 15 cents, or 0.23%, to $64.43.

China’s exports growth slowed to a three-month low in May as U.S. tariffs slammed shipments, data showed, while factory-gate deflation deepened to its worst in two years, heaping pressure on the world’s second-largest economy both at home and abroad.

The data also showed that China’s crude oil imports declined in May to the lowest daily rate in four months, as state-owned and independent refiners underwent widespread planned maintenance.

“Bad timing for crude oil, which was testing the top of the range and knocking on the door of a technical break above $65,” said IG market analyst Tony Sycamore, referring to WTI prices.

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“That said I would expect the reaction to be less extreme than usual, given U.S. and China trade talks later today,” Sycamore told Reuters.

Brent had advanced 4%, and WTI gained 6.2%, last week for their first weekly gain in three, as the prospect of a U.S.-China trade deal boosted some investors’ risk appetite.

A U.S. jobs report showing unemployment held steady in May appeared to increase the odds of a Federal Reserve interest rate cut, further supporting gains last week.

The prospect of a China-U.S. trade deal that could support economic growth and increase demand for oil outweighed worries about increased OPEC+ supply after the group announced on May 31 another big output hike for July.

The Star