Investing.com-- Oil prices held steady in Asian trading on Monday as investors remained cautious ahead of key U.S.-China trade talks in London later in the day, with attention also turning to a wave of Chinese economic data, including inflation and trade figures.

As of 21:00 ET (01:00 GMT), Brent Oil Futures expiring in July inched down 0.1% to $66.43 per barrel, while West Texas Intermediate (WTI) crude futures also edged 0.1% lower to $64.52 per barrel.

Both contracts jumped more than 4% last week as a better-than-expected U.S. jobs report and resumed trade talks between the U.S. and China reduced worries of a global economic slowdown.

Markets eye US-China talks for demand cues

Senior U.S. officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, are set to meet Chinese Vice Premier He Lifeng in London to discuss tariff rollbacks, export controls, and broader bilateral trade concerns.

The talks come amid persistent global economic uncertainty and strained supply chains, with both sides looking to stabilize a relationship that has frayed over issues ranging from technology to rare earth access.

The upcoming talks follow a tentative diplomatic thaw reached in Geneva last month and mark the first formal engagement between the two sides since then. Markets are hoping for signs of progress that could ease pressure on global trade flows and commodity demand.

Crude markets have been under pressure from global trade worries and weak macroeconomic indicators out of China.

Oil has also come under renewed pressure as the Organization of Petroleum Exporting Countries and allies, collectively known as OPEC+, have steadily accelerated production this year.

China May CPI, trade data on tap

Adding to market caution, China is scheduled to release a raft of economic figures early Monday, including inflation and export figures, amid concerns about the strength of domestic demand in the world’s second-largest economy.

Weak trade data, combined with the impact of ongoing U.S. tariffs, continue to weigh on Chinese manufacturing and export competitiveness.

The subdued tone reflects investors’ wait-and-see approach, with broader market sentiment hinging on the outcome of Monday’s diplomatic engagements in London.