Crude oil prices declined during Asian trade on Tuesday as investors scaled back their expectations for demand growth amid the ongoing trade war between the United States and China.
By 2:50 pm AEST (4:50 am GMT), Brent crude futures fell $0.53 or 0.8% to US$65.33, while U.S. West Texas Intermediate (WTI) crude futures declined $0.47 or 0.8% to $61.58 a barrel.
Markets have been unsettled by mixed messages from U.S. President Donald Trump and Beijing regarding the progress of efforts to ease a trade war that threatens global economic growth.
Bessent said he spoke with his Chinese counterparts at last week’s International Monetary Fund meetings about “traditional things like financial stability, global economic early warnings”, without directly addressing tariffs.
Meanwhile, Chinese officials continue to deny any tariff negotiations with the U.S., stating that no discussions have taken place and refuting Trump’s claim that President Xi spoke with him on the matter.
ANZ analysts observed: "Easing geopolitical risks also weighed on the market. The U.S. and Iran reported signs of progress in talks on a deal over Tehran’s nuclear program. The two sides agreed to meet again in Europe."
Meanwhile, several members of OPEC+ — the Organisation of the Petroleum Exporting Countries and its allies — are expected to propose accelerating output increases for a second consecutive month at their June meeting.
In terms of upcoming data, the American Petroleum Institute is scheduled to release its estimates on U.S. oil inventories later in the session (Wednesday AEST), with official figures from the Energy Information Administration set to follow on Wednesday (Thursday AEST).
