West Texas Intermediate (WTI) U.S. crude oil prices began the week under mild pressure, retreating from Friday’s rally that pushed prices above $64.00 for the first time since April 23. As of Monday’s Asian session, WTI trades near $63.80, down around 0.40% on the day. However, the pullback remains limited amid cautious optimism surrounding upcoming U.S.-China trade negotiations.
High-level talks are set to take place in London, where U.S. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick will meet with Chinese Vice Premier He Lifeng. The negotiations are aimed at easing trade tensions between the world’s two largest economies, with potential implications for global economic growth and fuel demand. Hopes for progress in the discussions are helping to cushion crude’s downside.
Adding support to oil prices is the weaker U.S. dollar, which lost some of its post-jobs report momentum. While May’s U.S. employment data beat expectations, concerns over the U.S. fiscal outlook and renewed speculation that the Federal Reserve may cut interest rates in 2025 have tempered enthusiasm for the greenback. This offers underlying support to dollar-denominated commodities like crude oil.
Traders also appear to have largely absorbed OPEC+’s decision on May 31 to proceed with a significant production increase for July. The market’s limited reaction suggests confidence in demand resilience and hints that recent price dips may be seen as buying opportunities.
From a technical standpoint, Friday’s breakout above the key $63.20–$63.30 resistance zone served as a bullish signal, reinforcing the upward bias. In the absence of major U.S. economic data releases early in the week, the market is expected to remain sensitive to geopolitical developments and central bank commentary.
