Trump-Xi Summit Hovers Over Oil Prices as Global Supply Concerns Linger

Oil prices have stabilized above $100 per barrel as investors await the high-stakes summit between US President Donald Trump and China's Xi Jinping in Beijing. The fragile Middle East ceasefire remains a concern, with sharp price swings possible if tensions escalate or supply flows are disrupted.

The International Energy Agency (IEA) reported that global oil supply will not meet total demand this year due to the war's impact on Middle Eastern production. 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.

Trump said he does not think he will 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 of Hormuz. The US economy is already feeling the effects of higher oil prices, with economists expecting second-round effects in the months ahead.

The market remains highly reactive to updates from the region, with sharp price swings possible. Any further escalation or direct threat to supply flows could quickly revive strong upside momentum in both Brent and WTI.