Oil prices climbed on Tuesday as the United States and China agreed to extend a pause on raising tariffs. This move eased fears that their trade war might worsen and harm the economies of the two biggest oil consumers in the world. The deal also supports hopes for stronger fuel demand.
Brent crude futures increased by 26 cents, or 0.39%, reaching $66.89 per barrel by 00:15 GMT. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures rose 22 cents, or 0.34%, to $64.18 per barrel.
U.S. President Donald Trump announced a 90-day extension of the tariff truce with China. This extension avoids new high tariffs on Chinese goods just before the crucial U.S. holiday shopping season. The move was confirmed by a White House official on Monday.
The extension is seen as a positive sign by investors, who are hopeful that easing trade tensions will support economic growth and oil demand. The trade war between the two largest economies has raised concerns about a slowdown in global fuel consumption.
Investors are also watching a scheduled meeting between President Trump and Russian President Vladimir Putin on August 15 in Alaska. The leaders plan to discuss ways to end the war in Ukraine. This meeting takes place amid growing U.S. pressure on Russia.
The U.S. has threatened tougher sanctions on buyers of Russian oil, including China and India, if no peace deal is made. Such sanctions could disrupt global oil trade flows and affect prices.
The extension of the tariff pause and the upcoming U.S.-Russia meeting have together helped lift oil prices, showing that trade and geopolitical developments remain key drivers for the oil market.
