• WTI falls as traders await the high-stakes Beijing summit between President Donald Trump and President Xi Jinping.
• Trump and Xi may lower tariffs on $30 billion of non-sensitive goods, excluding items vital to national security.
• EIA data shows Hormuz oil flows fell nearly 6 million barrels daily in Q1 due to the Middle East conflict.

West Texas Intermediate (WTI) crude oil price continues to slide for a second straight day, trading near $96.80 per barrel during Asian market hours on Thursday. This decline comes as traders exercise caution ahead of a pivotal summit in Beijing between US President Donald Trump and Chinese President Xi Jinping.

The meeting marks the first state visit to China by a US leader in nine years. As the world’s two largest economies attempt to stabilize their relationship, they are reportedly considering a framework to reduce tariffs on roughly $30 billion worth of goods, excluding those tied to national security.

However, geopolitical tensions remain a major factor. The summit is taking place against the backdrop of the war in Iran. Washington has recently increased pressure on Tehran by imposing new sanctions on entities involved in selling Iranian oil to China and threatening banks that facilitate those transactions.

Oil supply concerns also loom over the market. According to the US Energy Information Administration (EIA), crude and fuel flows through the Strait of Hormuz dropped by nearly 6 million barrels per day in the first quarter following the outbreak of the Middle East conflict in late February.

Furthermore, the International Energy Agency (IEA) warned that the global oil market will likely face a significant undersupply until October, even if the conflict ends as early as next month. This is compounded by news from Saudi Arabia, which informed OPEC that its oil production has fallen to its lowest level since 1990.