Oil prices were little changed on Monday as investors awaited US-China trade talks in London in hopes that a deal could improve the global economic outlook and further boost demand.

Brent crude futures were up 4 cents at $66.51 a barrel by 0940 GMT while US West Texas Intermediate crude was down 1 cent at $64.57.

Brent rose 4% last week and WTI 6.2% as the prospect of a US-China trade deal boosted risk appetite for some investors.

US President Trump and Chinese leader Xi Jinping spoke by phone on Thursday before US and Chinese officials meet in London on Monday in a bid to ease trade tensions between the two countries.

A trade deal between the US and China could support the global economic outlook and in turn boost demand for commodities including oil.

Monday's talks could cushion the impact on prices from a series of Chinese data releases, said IG market analyst Tony Sycamore.

China's export growth slowed to a three-month low in May as U.S. tariffs curbed shipments while factory deflation deepened to its worst in two years, adding to pressure on the world's second-largest economy at home and abroad.

"Bad timing for crude, which is testing the top of its range and approaching a technical break above $65," Sycamore said, referring to WTI prices.

The data also showed that China's crude imports fell in May to the lowest daily level in four months as state-owned and independent refiners began planned maintenance.

The prospect of a potential Sino-U.S. trade deal outweighed concerns about the price impact of an output increase by the OPEC+ oil producer group next month. (alg)

Source: Reuters