FIRST TAKE: US-China framework trade agreement NEUTRAL for oil and gas prices *Talks ended with in-principle agreement to implement Geneva truce *Rare earths issue likely resolved and paves way for trade talks to move ahead, but no new deals or concessions have been made *China-US trade relationship remains the most important macro driver of markets (including energy markets) for the near term A preliminary US-China deal to implement the truce agreed in Geneva is NEUTRAL for both oil and gas markets, as it essentially puts trade negotiations (that had derailed) back on track and lacks any new concessions or progress on trade negotiations. ICE August Brent dipped to $66.70/b in Asian morning trade on June 11 after closing at $66.87/b the previous day. Platts had assessed JKM, the benchmark price for LNG cargoes delivered to Northeast Asia, for July at $12.302/MMBtu, on June 10. Markets have been tracking the US-China talks in London from the start of the week, and the outcome after two days of supposedly intense talks is disappointing. Both sides agreed on a framework late June 10 to implement the consensus reached in Geneva, and US negotiators said they expect issues around China's export restrictions on rare earths to be resolved, followed by the US easing of tariffs. Beijing’s curbs on rare earth exports have been one of the major sticking points in the trade dispute, and progress on the issue means broader talks can advance. While this is positive for markets, the lack of further details, no fixed timelines for further talks or decisions, and frictions on other issues, still leave much to be resolved. The US and China have yet to indicate a firm roadmap for resolving differences, and ongoing uncertainty in trade discussions will continue to cause volatility in crude oil and natural gas/LNG prices. Meanwhile, a federal appeals court June 10 granted President Donald Trump's request to keep sweeping tariffs on China and other countries in effect, which means legal challenges to the tariffs and domestic issues will also remain a source of uncertainty for markets. Read on Platts Connect: https://tinyurl.com/2ct6n4wy