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Oil Could Crash If Trump and Xi Don't Deliver, JPMorgan Says

  • Brent could fall below $60 without progress, Deshpande says
  • ‘Just a small change’ won’t do, top oil researcher says
Vice President Mike Pence Visits Permian Basin Oil Field And Diamondback Oil Rig
Photographer: Callaghan O'Hare/Bloomberg

A rally that boosted crude prices more than 10% over the past two weeks could be in serious trouble if the U.S. and China don’t take a significant step toward resolving their trade dispute this weekend, according to JPMorgan Chase & Co.’s head of oil research and strategy.

Investors are looking for “meaningful” progress from the meeting in Japan between U.S. President Donald Trump and China’s Xi Jinping -- something more than merely resuming negotiations, Abhishek Deshpande said in an interview. Without it, Brent crude, now trading around $67 a barrel, could slide to $60 or lower, he said.