Oil prices moved higher during Tuesday's Asian trade as sentiment surrounding ongoing trade negotiations between the United States and China improved.
By 3:10 pm AEST (5:10 am GMT) Brent crude futures gained $0.18 or 0.3% to reach US$67.22 per barrel, while U.S. West Texas Intermediate (WTI) crude rose $0.10 or 0.2% to US$65.40.
U.S. and Chinese officials convened in London on Monday and are set to continue talks into Tuesday. The discussions aim to resolve long-standing tensions that have escalated from tariffs to restrictions on rare earths, raising concerns about global supply chains and economic growth.
U.S. President Donald Trump struck an upbeat tone on Monday, telling reporters the discussions were progressing well and that he was “only getting good reports” from his negotiating team in London.
A successful outcome could bolster the global economic outlook, increasing demand for key commodities such as oil.
Meanwhile, geopolitical developments continued to add uncertainty to oil markets. Iran announced it would soon submit a counter-offer to the United States regarding a renewed nuclear deal, pushing back against what it described as an “unacceptable” American proposal.
President Trump reiterated the impasse, stressing disagreements remain over Iran’s ability to enrich uranium on its own territory.
As the third-largest producer within OPEC, any easing of sanctions on Iran could enable it to boost crude exports, adding downward pressure to global oil prices.
