Oil Prices Dip as Strong Dollar and Fed Outlook Pressure Markets Ahead of Trump-Xi Meeting

Oil prices fell slightly in Asian trading on Thursday, weighed down by a stronger U.S. dollar and cautious market sentiment ahead of a key meeting between U.S. President Donald Trump and Chinese President Xi Jinping. The Federal Reserve’s latest policy move also added pressure, as it cut interest rates but signaled that further easing in December was unlikely.

Brent crude futures slipped 0.2% to $64.81 per barrel, while West Texas Intermediate (WTI) crude fell 0.3% to $60.31 per barrel by 21:18 ET (01:18 GMT). The greenback strengthened sharply after the Fed’s decision, gaining nearly 0.6% against a basket of major currencies before seeing slight pullbacks in Asian trade. A stronger dollar typically weighs on oil and other commodities priced in the U.S. currency, making them more expensive for overseas buyers.

Market focus has now turned to the highly anticipated Trump-Xi meeting in South Korea, held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit. The talks are seen as crucial for shaping future U.S.-China trade relations, which have been a major source of market volatility in recent months. Both nations have shown signs of compromise ahead of the meeting, raising hopes for progress toward a broader trade deal that could ease global economic uncertainty and support oil demand.

Despite short-term gains following the Fed’s rate cut—typically supportive of energy consumption—crude prices remain under pressure. Ongoing concerns about slowing demand and a persistent supply glut have weighed on sentiment, keeping oil prices on track for a third consecutive monthly decline. With global economic headwinds and cautious optimism surrounding U.S.-China diplomacy, traders are bracing for continued volatility in the oil markets.