Oil closes lower as trade developments continue

Oil drilling rigs

Oil prices fell at the close of trading today, Oct. 27, as investors monitored developments in trade talks between China and the United States, amid uncertain prospects for the global oil market.

Brent crude futures for December delivery fell 0.49%, or 32 cents, to $65.62 a barrel.

WTI crude futures for December delivery slipped 0.31%, or 19 cents, to $61.31 a barrel.

The prospects for trade relations between the world's two largest economies have shown signs of easing, after US Treasury Secretary Scott Bessent announced the achievement of a "substantial framework" for a trade agreement that prevents tariff increases on China.

Bessent's remarks came days before a highly anticipated bilateral summit between US President Donald Trump and his Chinese counterpart Xi Jinping on Oct. 30 to discuss trade relations between the two countries.

Oil prices received support late last week after the US imposed sanctions on Russia's two largest oil companies, Rosneft and Lukoil, a move that could reduce global crude supply.

In a related development, reports indicated that OPEC+ is considering approving another increase in the monthly production ceiling of 137,000 barrels per day, starting next December. The decision will be discussed at an online meeting of the alliance on Nov. 2.