FX.co ★ Oil Rises on US-China Trade Talk Optimism

WTI crude oil futures climbed to approximately $65.4 per barrel on Tuesday, reaching a peak not seen in over two months. Investors are keenly monitoring developments from the US-China trade negotiations, anticipating potential resolutions that could alleviate the impact of tariffs on energy demand. High-level discussions between US and Chinese representatives commenced in London on Monday and are set to proceed today. US Treasury Secretary Scott Bessent characterized Monday’s talks as productive, while Commerce Secretary Howard Lutnick deemed them as promising, bolstering market optimism for a breakthrough. In addition to this, geopolitical tensions continue to underpin oil prices. The ongoing conflict between Russia and Ukraine shows no signs of a ceasefire, and uncertainty lingers over a nuclear agreement involving the US and Iran. At the same time, Saudi Arabia has urged OPEC+ to increase production by a minimum of 411,000 barrels per day in August, with the possibility of a further hike in September, sparking concerns about potential oversupply in the market.