Oil prices hold sharp gains ahead of U.S.-China trade talks

Oil prices remained stable during Asian trading hours on Monday as investors remained cautious ahead of key U.S.-China trade talks in London later in the day, while keeping an eye on a slew of Chinese economic data, including inflation and trade data.

Brent crude futures expiring in July edged down 0.1% to $66.43 a barrel, while West Texas Intermediate (WTI) futures also edged down 0.1% to $64.52 a barrel, as of 21:00 ET (09:00 GMT).

Both contracts rose more than 4% last week as a better-than-expected U.S. jobs report and the resumption of trade talks between China and the United States eased concerns about a global economic slowdown.

Senior U.S. officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, will meet with Chinese Vice Premier He Lifeng in London to discuss tariff reductions, export controls and broader bilateral trade issues.

The talks come amid continued uncertainty in the global economy and supply chain tensions, with both sides looking to stabilize relations strained over issues ranging from technology to access to rare earth resources.

The upcoming talks are the first formal engagement between the two sides following an initial diplomatic thaw reached in Geneva last month. Markets are hoping for signs of progress that could ease pressure on global trade flows and commodity demand.

The crude oil market has been under pressure from global trade concerns and weak macroeconomic indicators in China.

Oil prices are also under renewed pressure as the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, have steadily increased production this year.

Adding to market caution, China is set to release a slew of economic data early Monday, including inflation and export data, as markets worry about the strength of domestic demand in the world's second-largest economy.

Weak trade data, coupled with the impact of ongoing U.S. tariffs, continue to weigh on China's manufacturing and export competitiveness.

The cautious tone reflects investors' wait-and-see attitude, with broader market sentiment dependent on the outcome of diplomatic engagements in London on Monday.