FX.co ★ Oil Edges Up After Trump Extends Tariff Truce with China

WTI crude oil futures increased to $64.1 per barrel on Tuesday, building on modest gains from the previous day. This rise followed President Donald Trump's decision to extend the tariff truce with China by an additional 90 days. The announcement was made just hours before new tariffs were to be implemented, offering temporary relief from the escalating trade tensions that have the potential to impact global economic growth and energy consumption. Investors are also focusing on the upcoming US–Russia discussions regarding the conflict in Ukraine later this week. Despite this, President Trump remarked on Monday that expectations for a significant breakthrough were minimal, describing the meeting's purpose as exploratory to determine the feasibility of a peace agreement. Optimism for a quick resolution was further undermined by Ukrainian President Zelensky's firm stance against discussing any territorial concessions to Russia. Nevertheless, a peace agreement could potentially mitigate risks to Russian oil supply disruptions. Additionally, traders are anticipating OPEC's monthly report, along with forecasts from the US Energy Information Administration (EIA) and the International Energy Agency (IEA), to gain new insights into supply and demand dynamics.