Oil prices barely moved on Wednesday as investors monitored a fragile Middle ?East ceasefire and awaited a high-stakes summit in Beijing between U.S. President Donald Trump and China’s Xi Jinping.
Brent crude futures were ?down 41 cents to $107.36 U.S. a barrel at 11:12 a.m. ET. Meanwhile, U.S. West Texas Intermediate futures edged up 68 cents to $102.86.
Both benchmarks have hovered around or above $100 per barrel since the U.S.-Israeli war on Iran began at the end of February after which Tehran effectively shut the vital ?Strait of Hormuz.
Supporting prices, the International Energy Agency said global oil supply would not ?meet total demand this year as the war wreaks havoc on Middle Eastern production.
The IEA also said Russia’s crude oil production declined by 460,000 barrels per day in April from a year earlier to around 8.8 million bpd, as Ukraine ramped up drone attacks on energy targets.
OPEC on ?Wednesday lowered its forecast for world oil demand growth in 2026.
Trump landed in Beijing on Wednesday after saying on Tuesday he did not think he would need China’s help to end the war, even as prospects for a lasting peace deal weakened and Tehran tightened its grip over the strait.
China is the biggest purchaser of Iranian oil despite sanctions pressure from the Trump administration. Trump is scheduled to meet Xi on Thursday and Friday.
In April, U.S. consumer prices rose sharply for a second straight month, producing the largest annual increase in inflation in nearly three years and reinforcing expectations the Federal Reserve will keep interest rates steady for a ?while.
Elevated interest ?rates raise borrowing costs and can curb oil demand.
