Oil Action: WTI crude
Oil Action: WTI crude pulled back from the trend highs of $59.91 seen on Wednesday, bottoming at $58.51 ahead of the N.Y. open. Focus turns to the G-20 meeting, beginning today in Osaka, Japan, where Trump and Xi will talk trade on Saturday. According to the WSJ, Xi will give Trump China's conditions to settle the trade dispute, including ending the ban on Huawei buying U.S. technology, removal of U.S. tariffs, and stop pressuring China to buy more American products. At face value, given Trump's hard-line stance on trade, these demands may be a non-starter. A breakdown in trade talks and implementation of further tariffs would likely see oil prices plunge, as the market prices in sharp economic slowing. This scenario is seen as the least likely outcome, as both countries know what would be at stake to ramp up trade disputes further. The current consensus seems to be that no deal is made, but continued negotiations are agreed to.