West Texas Intermediate (WTI) crude oil prices were steady around $64.50 a barrel in early European trading on Tuesday. Crude oil prices could extend their gains for a fourth straight day as a possible trade deal between China and the United States eases tensions over tariffs that had previously dampened energy demand.
Chinese and American advisers will continue their second day of talks at 10 a.m. London time on Tuesday. Trade talks will continue as the world’s two largest economies seek to expand the agenda from tariffs to rare earth element restrictions, global supply chain disruptions and slowing economic growth.
Treasury Secretary Scott Bessant said Monday’s talks went well. Commerce Secretary Howard Lutnick also praised the talks as “productive,” raising expectations for progress in improving relations between the two countries.
Iran is set to present a counter-proposal to the nuclear deal to the United States, while President Trump has said he is not prepared to allow Iran to continue uranium enrichment activities. However, easing U.S. sanctions on Iran, the third-largest producer in the Organization of Petroleum Exporting Countries (OPEC), would allow Iran to export more oil, putting downward pressure on global crude prices.
OPEC+, which includes OPEC members and their allies such as Russia, plans to scale back its latest round of production cuts. Reuters cited a report from ANZ senior commodity strategist Daniel Hynes as saying: “The prospect of further OPEC supply increases still hangs over the market.”
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