Oil is rising as signs of easing US-China trade tensions boost market sentiment
Oil prices rose on Tuesday as easing trade tensions between the US and China boosted market sentiment and eased concerns about global fuel demand.
Trump is set to meet with Chinese President Xi Jinping in South Korea this month. This development suggests both countries are working to ease tensions over tariffs and export controls. Substantial talks took place between the two sides over the weekend, and more are expected.
Brent crude futures rose 22 cents, or 0.4%, to $63.54 a barrel by 04:05 GMT, while WTI Crude was trading 22 cents, or 0.4%, at $59.71 a barrel.
In the previous session, Brent crude closed up 0.9%, while US WTI rose 1%.
Oil prices were stabilized as investors weighed US-China tensions against demand, and Trump has softened his stance, signaling he is open to a deal.
The prospect of improved trade relations between the world's two largest economies has historically supported oil markets, as investors anticipate stronger global growth and rising fuel demand.
However, recent developments, including the USA's expansion of rare earth export controls from China and Trump's threats of 100% tariffs and software export restrictions effective November 1, have negatively impacted market sentiment.
Last week, oil prices recorded weekly declines and reached their lowest levels since May.
Trump had also cast doubt on the possibility of a meeting with Xi during the Asia-Pacific Economic Cooperation (APEC) summit scheduled for October 30 and November 1 in South Korea.
This time, while the sell-off in markets appears limited due to the conciliatory tone between Washington and Beijing, the positive implications of their relationship are expected to remain a key focus.
However, as a retaliation China announced it would impose tariffs on US-owned vessels, including oil tankers, arriving on its shores. This led to last-minute cancellations and increased shipping costs.
Meanwhile, the oil industry continues to grapple with geopolitical issues. On Monday, Trump declared an end to the two-year Gaza war, which has capped market growth and disrupted the wider Middle East.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, stated in a monthly report released on Monday that the oil market supply gap will narrow in 2026 as the broader OPEC+ alliance moves forward with planned production increases.
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