Oil prices edged lower from a seven-week high in Asian trading on Wednesday amid demand outlook worries, while focus remained on the outcome of crucial U.S.-China trade talks in London.

As of 21:55 ET (01:55 GMT), Brent Oil Futures expiring in July fell 0.3% to $66.65 per barrel, after reaching its highest level since late April.

West Texas Intermediate (WTI) crude futures also fell 0.2% to $64.86 per barrel, after jumping to its highest since early April.

US-China trade talks outcome awaited

U.S. and Chinese officials concluded two days of intense trade negotiations in London on June 10–11, agreeing on a framework aimed at rejuvenating the Geneva truce and resolving export control disputes.

The deal "puts meat on the bones" of previous understandings by addressing reciprocal restrictions on critical technologies, U.S. Commerce Secretary Howard Lutnick said on Tuesday.

China agreed to ease rare‑earth and magnet export curbs, while the U.S. will roll back some export controls on semiconductors and related tech.

Lutnick and Chinese Vice Commerce Minister Li Chenggang affirmed both governments will now seek formal sign‑off from Presidents Trump and Xi before implementation.

While the framework is still preliminary, lacking granular details, its announcement uplifted sentiment by defusing escalating tariff and supply chain tensions.

Oil prices hovered near seven‑week highs ahead of the announcement, as easing trade friction is expected to support global growth and lift energy demand.

Investors assess demand outlook; API weekly data in focus

U.S. crude oil output is expected to decline next year due to reduced drilling activity driven by weaker commodity prices, the U.S. Energy Information Administration said Tuesday in its monthly report.

The EIA also cut its global oil demand forecast for this year by roughly 200,000 barrels per day to 103.5 million bpd, pointing to weaker consumption in developed countries.

"Given our view that oil prices will be lower towards the end of this year, there's scope for further downward revisions in US crude oil output estimates for next year," ING analysts said in a note.

This comes amid steady production increases by the oil-producing cartel, OPEC+, which underscores an oversupply scenario.

Meanwhile, the U.S. crude oil inventories fell by 370,000 barrels for the week ending June 6, according to data released Tuesday by the American Petroleum Institute (API).

The decline was in contrast to analysts' expectations of a rise by 700,000 barrels.

The API data is closely watched as a precursor to the official weekly report from the U.S. Energy Information Administration (EIA), which is due on Wednesday.

Source: Investing.com