Petrol Prices are on the Decline: US-China Trade Talks Expected

The Decline in Petrol Prices Continues

Petrol prices are showing a decline with the easing of trade tensions between the USA and China. As investors assess this development,
Brent crude is trading around 61 dollars per barrel. At the same time, U.S. crude oil (WTI) has also fallen to 57 dollars.

Trade Talks and Optimistic Expectations

The next round of trade talks between the USA and China will take place this week. President Donald Trump stated that the high tariffs on the Asian country are unsustainable,
offering positive comments on the likelihood of an agreement coming out of the talks.

Slowdown in the Chinese Economy

On the other hand, the Chinese economy has recorded a slowdown for the second consecutive quarter. Despite strong exports, cuts in consumer and company spending have negatively affected growth,
which has also reflected on petrol demand.

Oversupply and Price Pressure

Petrol futures are heading towards their third consecutive monthly losses. The International Energy Agency (IEA) reported last week that it expects an oversupply lasting until 2026. However, attacks on Russian energy infrastructure in Ukraine can lead to sudden spikes in prices.

Trump's Diplomatic Efforts

Trump announced that he would continue his efforts to end the war in Ukraine during his second meeting with President Vladimir Putin. However,
the impact of previous talks had been limited. Nevertheless, if tensions decrease, Citigroup Inc. forecasts that petrol prices could drop to 50 dollars per barrel.