Brent gains amid easing US-China trade concerns

The front-month ICE Brent contract has gained by $0.36/bbl on the day, to trade at $62.31/bbl at 09.00 GMT.

IMAGE: Oil storage tanks. Getty Images

Upward pressure:

Brent crude’s price has rebounded amid signs of easing trade tensions between the world's two largest oil consumers – the US and China.

US President Donald Trump is set to meet his Chinese counterpart, Xi Jinping, in South Korea later this month, Reuters reported, citing US Treasury Secretary Scott Bessent.

Both countries are expected to work towards easing tensions following recent tariff threats and export controls, the report added.

“Trump struck a conciliatory tone towards China on Sunday, after threatening to apply an additional 100% of tariffs,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

Brent has remained under pressure after the International Energy Agency (IEA) cut its global oil demand growth forecast again.

The Paris-based agency now expects oil demand to increase by 700,000 b/d in 2025 and 2026, about 40,000 b/d lower than its previous estimate – and well below projected oil production levels, the IEA said.

“Sentiment wasn’t helped by warnings of a record surplus in the oil market,” Hynes said.

Additionally, global oil supply rose in September to a record 108 million b/d, up by a massive 5.6 million b/d compared with the same period last year, the IEA noted.

The agency projects global oil supply to grow by 3 million b/d to average 106.1 million b/d in 2025 and rise by another 2.4 million b/d in 2026.

“The projected surplus is up roughly 18% from last month’s estimate, as the OPEC+ alliance continues to revive output,” he added.

By Aparupa Mazumder

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