FX.co ★ WTI Slips as Traders Watch US-China Talks

WTI crude oil futures experienced a decline of nearly 0.5%, concluding just below $65 per barrel on Tuesday. This movement occurred as traders closely monitored the ongoing US-China trade discussions, which continued into their second day in London. Despite the dip in prices, there was a cautiously optimistic tone in the market, underscored by US Commerce Secretary Howard Lutnick's comments that the negotiations were progressing "really, really well." On the supply side, reports indicated that Saudi Aramco reduced its July oil shipments to China by 1 million barrels compared to June, suggesting that the anticipated OPEC+ production increase might not lead to a substantial rise in supply. Concurrently, Iran announced its intention to present a counter-proposal for a nuclear agreement, and any relaxation of US sanctions could enable Iran to escalate its oil exports, potentially exerting downward pressure on prices. Additionally, the European Union introduced a new sanctions package targeting Russia's energy sector, which could constrict global supply.