West Texas Intermediate (WTI) crude oil prices fell below the $97 per barrel mark on Thursday during early European trading, as markets braced for the high-level summit between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing. The decline reflected a cautious stance among traders ahead of the two-day meeting, which was expected to shape trade relations and geopolitical dynamics.
According to Xinhua News Agency, Xi Jinping signaled an openness to foreign businesses, stating China's "door would only open wider." The remarks were seen as a potential precursor to improved economic ties, and some analysts suggested that any positive developments from the summit could ease geopolitical uncertainty and place downward pressure on crude prices in the short term.
Beyond trade, the talks carried implications for the Middle East. Trump was expected to urge Xi to pressure Iran into agreeing to a peace deal and reopening the Strait of Hormuz—a critical chokepoint for global oil supplies. This came just two days after the U.S. president called Iran's response to a U.S. proposal "unsatisfactory" and warned that the ceasefire was "on life support."
Amid these developments, the International Energy Agency (IEA) issued a stark warning on Wednesday, projecting that global oil supply could fall short of total demand in 2026, with a potential deficit of around 3.9 million barrels per day due to the Iran conflict. The revised estimate, up sharply from an earlier 1.5 million bpd forecast, underscored the building supply concerns that continue to support crude prices despite short-term headwinds.
Technical analysts noted that a sustained break below $97 might open the door to further declines toward the $94–$95 range, while a positive outcome from the Trump-Xi discussions could restore market confidence and lift crude benchmarks.
