Oil prices rose on Tuesday amid the continued suspension of US and China tariffs, which eased fears that an escalating trade war could disrupt the economies of these countries and reduce fuel demand in the world's two largest oil consumers, UNN reports with reference to Reuters.
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Brent crude futures rose 26 cents, or 0.39%, to $66.89 a barrel by 00:15 GMT (03:15 Kyiv time), while US West Texas Intermediate crude futures rose 22 cents, or 0.34%, to $64.18.
US President Donald Trump extended the tariff truce with China for another 90 days, a White House official said on Monday, preventing the collection of triple-digit tariffs on Chinese goods as American retailers prepare for the critical year-end holiday season.
This raised hopes that an agreement could be reached between the world's two largest economies, and that this could help circumvent a virtual trade embargo between them. Tariffs risk slowing economic growth, which could reduce global fuel demand and lower oil prices.
Investors are also eagerly awaiting the meeting between Trump and Kremlin head Vladimir Putin on August 15 in Alaska to negotiate an end to the war in Ukraine.
The meeting comes amid increased US pressure on Russia, with the threat of tougher sanctions for buyers of Russian oil, such as China and India, if a peace agreement is not reached, which could disrupt oil trade flows.
"Any peace agreement between Russia and Ukraine would end the threat of disruptions to Russian oil supplies that hangs over the market," ANZ senior commodities strategist Daniel Hynes wrote in a note.
Last Friday, Trump set a deadline by which Russia must agree to peace in Ukraine, otherwise its oil buyers will face secondary sanctions, while pressuring India to reduce its purchases of Russian oil.
Washington is also pressuring Beijing to stop buying Russian oil, with Trump threatening to impose secondary tariffs on China.
The risk of these sanctions being imposed has decreased ahead of the Trump-Putin meeting on August 15.
Also on the radar are US inflation data, to be released later in the day, which could hint at the Fed's interest rate trajectory. Any sign that the US central bank may soon cut rates would support oil prices.