Oil Prices Rise After US-China Tariff Truce Extension

Oil prices saw modest gains following U.S. President Donald Trump's extension of the tariff truce with China by another 90 days, easing fears of a renewed trade war that could disrupt global economic growth and oil demand. Brent crude rose to around $66.90 per barrel, and U.S. West Texas Intermediate crude climbed to about $64.20, reflecting cautious optimism ahead of key U.S. inflation data and jobless claims. The tariff pause also helped alleviate concerns over trade disruptions ahead of the crucial holiday season, with China reciprocating the extension and suspending certain export-control measures on U.S. entities. Meanwhile, traders remain watchful of the upcoming meeting between Presidents Trump and Vladimir Putin, which could influence oil market dynamics depending on prospects for a ceasefire in Ukraine and potential easing of sanctions on Russian oil exports. Despite these developments, oil prices remain pressured by a market surplus after OPEC+ reversed 2023 supply cuts and face uncertainties tied to the geopolitical situation and economic indicators. Overall, the extended tariff truce and diplomatic engagements provide some stability but have not yet reversed the downward trend in oil prices seen earlier this year.