- Oil prices rose as Trump extended the US-China tariff truce until 10 November
- Brent crude traded near $67, close to a two-month low
- US oil is down over 10% in 2024 due to market surplus and OPEC+ supply cuts reversal
Oil edged higher after President Donald Trump extended a pause of lofty US tariffs on China, adding to optimism that trade ties between the world's two biggest economies are improving.
Brent traded just shy of $67 a barrel, but remained near the lowest in two months, while West Texas Intermediate was near $64, after a subdued session on Monday. Trump signed an order extending the truce with China through Nov. 10, deferring a tariff hike set for Tuesday.
Oil is down more than 10% this year as traders grapple with a surplus in the market after OPEC+ reversed supply cutbacks made in 2023, despite signs of slowing economic growth. Traders will look to a meeting between Trump and Russian leader Vladimir Putin later this week for signs sanctions on the major oil producer will be eased, although the US president on Monday downplayed expectations for a deal to end the war in Ukraine.
“I expect crude to remain rangebound until Friday's meeting, but a bit more vulnerable to downward pressure,” said Vandana Hari, founder of oil market analysis firm Vanda Insights.
The aggregate volume of Brent traded fell to its lowest since early July on Monday and is well below its daily average — suggesting traders are exercising caution as they seek further clarity on the outlook. Monthly reports from the Organization of the Petroleum Exporting Countries and the US Department of Energy later on Tuesday may help clarify the supply-demand balance.
Prices:
Brent for October settlement added 0.3% to $66.85 a barrel at 8:57 a.m. in Singapore.
WTI for September delivery added 0.3% to $64.14 a barrel
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