Oil markets showed little movement during Tuesday’s Asian trading session as investors focused on upcoming talks between the U.S. and Russia, which could potentially bring an end to the war in Ukraine and offer relief to major oil consumers like India and China.
Prices received some support after the U.S. and China agreed to extend their trade truce for an additional 90 days, easing concerns about a resurgence in their prolonged trade dispute. However, market participants remained cautious ahead of important U.S. inflation data due later in the day, limiting price gains.
At 21:52 ET (01:52 GMT), Brent crude for October delivery was up 0.2% at $66.74 per barrel, while West Texas Intermediate (WTI) crude also rose 0.2% to $63.21 per barrel.
Trade truce extension provides some boost
The extension of the temporary trade agreement between Washington and Beijing, which maintains reduced tariffs, helped steady oil prices. The original truce, covering May and June, was set to expire on Tuesday, risking a return to tariffs exceeding 100%.
Despite the challenges, both U.S. President Donald Trump and Chinese officials expressed optimism about the possibility of reaching a more permanent trade deal, bolstering market confidence.
Still, tariffs imposed last week by the U.S. continue to weigh on the market, as uncertainty persists about their impact on global economic activity and oil demand.
U.S.-Russia summit on Ukraine in the spotlight
The market is also keenly awaiting a high-profile meeting between Trump and Russian President Vladimir Putin scheduled for Friday in Alaska. The leaders are expected to discuss a possible resolution to the conflict in Ukraine.
This follows Trump’s recent threats to impose tougher sanctions on Russia’s oil industry and to levy steep tariffs on India and China—two of Russia’s largest oil customers. Trump proposed tariffs of up to 50% on imports from India and hinted at similar measures against China.
Such moves could disrupt oil supplies if India and China seek alternative sources, but market worries have eased somewhat ahead of the talks. Ukraine has made clear it will reject any deal requiring territorial concessions, but a reduction in hostilities could increase Russian oil exports, adding to global supply.
Focus shifts to U.S. inflation figures
Before the leaders meet, traders will turn their attention to the U.S. consumer price index data set to be released Tuesday. The report is expected to provide insight into fuel demand prospects in the world’s largest oil-consuming country.
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