Oil prices rose in Asian trading on Tuesday, partially recovering losses of 2.5% in the previous session amid underlying concerns about the impact of U.S. monetary policy and tariffs on global fuel demand.
By 2:10 pm AEST (5:10 am GMT) Brent crude futures gained $0.29 or 0.4%, to reach US$66.55 per barrel, while U.S. West Texas Intermediate (WTI) crude also climbed $0.39 or 0.6% to $62.80 per barrel.
The recovery follows a sharp drop of more than 2% in both benchmarks on Monday, which was triggered by signs of progress in negotiations on a potential nuclear agreement between the United States and Iran - developments that could increase global oil supply.
Meanwhile, market sentiment was further shaken by comments from U.S. President Donald Trump, who renewed his attacks on Federal Reserve Chair Jerome Powell.
Trump warned that the U.S. economy could face a slowdown unless interest rates were immediately reduced. His remarks heightened market anxiety over the Fed’s independence and the broader outlook for U.S. assets.
ANZ analysts commented in a note to clients: "Market concerns increased following the release of China’s final trade data, showing it had substantially reduced commodity imports from the US, while oil imports from Malaysia rose to a record high of 8.75mt in March, which is normally made up of Iranian or Venezuelan oil."
