Oil Prices slipped on Thursday even after U.S. President Donald Trump announced a tariff cut on Chinese goods. The decline came as investors remained doubtful that the move would mark a full resolution to the ongoing trade dispute between the two largest economies.
According to market data, Brent crude futures dropped by 20 cents, or 0.31%, to $64.72 per barrel by 0642 GMT. U.S. West Texas Intermediate (WTI) crude also fell 20 cents, or 0.33%, to $60.28 per barrel. Both benchmarks had gained in the previous session after reports of lower U.S. crude inventories.
Trump said he would reduce tariffs on China from 57% to 47% for one year following talks with President Xi Jinping in South Korea. In exchange, Beijing agreed to resume U.S. soybean imports, maintain rare earth exports, and tighten control on fentanyl trafficking.
Despite the agreement, analysts said markets viewed the announcement as a limited gesture rather than a breakthrough. “It’s nothing more than a pause in fighting and a minor de-escalation,” said Vandana Hari, founder of Vanda Insights.
Adding to the global economic backdrop, the U.S. Federal Reserve cut interest rates on Wednesday. However, the Fed indicated this could be the last rate reduction of the year due to uncertainty caused by the ongoing government shutdown. Experts noted that lower rates generally support economic growth, which can influence Oil Prices positively.
Meanwhile, U.S. crude inventories dropped by 6.86 million barrels to 416 million barrels last week, a sharper decline than analysts expected. The drawdown offered temporary support to Oil Prices, but overall market sentiment stayed weak.
Investors are now watching the upcoming OPEC+ meeting on November 2, where the group is expected to announce another output increase of 137,000 barrels per day for December.
In other related news also read India cutting Russian oil imports by 50%
Both Brent and WTI remain on track for a monthly loss of more than 3%, marking their third consecutive month of decline.
