Oil stable on US-China de-escalation hope

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LONDON:

Oil prices were stable on Friday and heading for a weekly loss, as traders squared positions ahead of an OPEC+ meeting, and showed caution over the possibility of a de-escalation of the trade dispute between China and the United States.

Brent crude futures were down 14 cents, or 0.23%, to $61.99 a barrel at 1312 GMT, while US West Texas Intermediate (WTI) crude futures fell 15 cents, or 0.25%, to $59.09 a barrel.

For the week, Brent was on track to fall 7.3% and WTI 6.2%.

China's Commerce Ministry said on Friday Beijing was evaluating a proposal from Washington to hold talks aimed at addressing US President Donald Trump's tariffs, signalling a possible easing of the trade tensions that have rattled global markets.

"There is some optimism when it comes to US-China relations but the signs are only very tentative," Harry Tchilinguirian, Group Head of Research at Onyx Capital Group, said. A threat from Trump to impose secondary sanctions on buyers of Iranian oil complicates any talks as China is the world's largest importer of Iran's crude.

US talks with Iran over its nuclear programme have been postponed after Trump reimposed a "maximum pressure" campaign against Iran that included efforts to drive the country's oil exports to zero.

Investor remained concerned that the broader trade war could push the global economy into a recession and curb oil demand.