Oil prices fell slightly after trade tensions between the US and China eased. US President Donald Trump decided to reduce tariffs from 57% to 47% after his meeting with Chinese President Xi Jinping in South Korea.
Brent crude oil fell 0.82% to $64.39, while WTI crude oil fell 0.76% to $60.02.
Under the agreement, Beijing committed to restarting soybean purchases from the US, continuing exports of rare earth elements, and combating fentanyl smuggling.
However, analysts are evaluating this development as a “temporary, not permanent, softening in relations.” Another factor supporting the economic outlook was the Federal Reserve’s (Fed) decision this week to lower interest rates. Rystad Energy economist Claudio Galimberti said, “This decision represents a supportive policy shift for commodities linked to economic activity.” US crude oil inventories fell by 6.86 million barrels to 416 million barrels in the week ending October 24. However, markets are pointing to a third consecutive monthly decline of more than 3%.Investors’ focus is now on the 137,000 barrel new production increase expected to be announced at the OPEC+ meeting on November 2.
