The talks have been met with weak oil demand from China and OPEC+ production increases weighing on the market.
Brent crude futures declined 19 cents, or 0.3%, to trade at $66.680 a barrel, while US West Texas Intermediate crude fell 16 cents, or 0.3%, to $64.82 at 05h18 CAT.

US and Chinese officials agreed on a framework to put their trade truce back on track and resolve China's export restrictions on rare earth minerals and magnets, US Commerce Secretary Howard Lutnick said on Tuesday at the conclusion of two days of intense negotiations in London.
"The current (price) corrections can be attributed to a mix of technical profit-taking and caution leading up to the US-China (official) announcement," said Phillip Nova, senior market analyst Priyanka Sachdeva. Trump will be briefed on the outcome before approving it, Lutnick added.

"In terms of what it means for crude oil, I think it removes some downside risks, particularly to the Chinese economy and steadies the ship for the US economy, both of which should be supportive for crude oil demand and the price," said Tony Sycamore, a Market Analyst for IG.

Meanwhile, on the supply side, OPEC+ plans to increase oil production by 411 000 barrels per day for July as it looks to unwind production cuts for a fourth straight month, with some analysts not expecting regional demand to soak up these excess barrels.

"Greater oil demand within OPEC+ economies, most notably Saudi Arabia, could offset additional supply from the group over the coming months and support oil prices," said Capital Economics' Climate and Commodities Economist, Hamad Hussain in a note.
"However, given that any boost to demand will be seasonal, we still think that Brent crude prices will fall to $60pb by the end of this year."

Later on Wednesday, markets will be focusing on the weekly US oil inventories report from the Energy Information Administration, the statistical arm of the US Department of Energy.

--Reuters--