Oil Prices Find Stability Amid Trade War Uncertainty and China’s Economic Moves

April 28, 2025 12:04 PM AEST | By Team Kalkine Media

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Oil Prices Find Stability Amid Trade War Uncertainty and China’s Economic Moves — Image source: shutterstock

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Highlights

Oil prices stabilize after a turbulent week

China prepares new measures to support economic growth

OPEC+ gears up for a key meeting on production levels

Oil prices steadied after a week marked by high volatility, as markets absorbed mixed signals from global trade negotiations, upcoming economic announcements from China, and rising geopolitical tensions in the Middle East.

Brent crude futures hovered just below $67 a barrel after a 1.6% decline last week. Meanwhile, West Texas Intermediate (NYSE:WTI) traded close to $63. Investors kept a close watch on updates from trade discussions, with Treasury Secretary Scott Bessent noting in a recent interview that conversations with U.S. trading partners, particularly in Asia, are showing signs of progress.

In China (SSE:601857), the largest global importer of crude oil, government officials are set to unveil new strategies to stabilize employment and stimulate economic growth. A press conference scheduled later Monday is expected to shed more light on policy measures aimed at countering the impact of U.S. tariffs. These developments are especially critical, as China's economic health plays a significant role in shaping global oil demand.

Despite the recent stabilization, Brent crude remains on track for its largest monthly drop since 2022, having fallen to a four-year low earlier this month. This downward pressure is largely due to concerns that the ongoing trade tensions between major economies could curb global economic activity and, by extension, reduce energy consumption.

Adding another layer of complexity, the OPEC+ coalition—which includes the Organization of Petroleum Exporting Countries and allied producers—has been increasing oil output from previously idled wells, intensifying bearish sentiments in the market. The group is preparing for a crucial meeting on May 5 to set production targets for June. Market watchers are keen to see if the group will make adjustments to support prices or continue with the current strategy.

While uncertainties persist, market participants remain focused on key events that could shift the balance for oil prices. The upcoming announcements from China and the decisions taken at the OPEC+ meeting are expected to provide clearer direction for the next phase of oil market movements.

With geopolitical risks lingering and economic signals mixed, the oil market continues to navigate through a challenging environment where policy decisions and trade developments carry significant weight.

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