Trade Talk Twist: Oil Prices Take a Dip

The recent meeting between Donald Trump and Xi Jinping in Busan, South Korea, has left energy markets in a state of flux. After a discussion lasting one hour and forty minutes, Trump announced a one-year trade agreement, set to renew automatically. However, the details remain under wraps, shared only aboard Air Force One.

Oil Prices React to Trade Talks

WTI and Brent crude both experienced a slight decline. Just as oil prices were gaining momentum from a significant drop in U.S. inventory data, the trade talk outcome stole the spotlight. If this deal materializes, it could boost oil prices, alleviating concerns about a slowing global economy. However, skepticism lingers—back in June, Trump claimed a deal was done, only for it to collapse. A repeat could lead to another price drop.

Geopolitical Maneuvers

While Taiwan wasn't on the agenda, Trump and Xi are collaborating on the Ukraine issue. As markets await further details, uncertainty prevails.

The Waiting Game

The outcome of this meeting could send oil prices soaring or sinking. For now, it's a case of "watch this space."