Oil prices continued their upward momentum on Tuesday, supported by optimism over global trade developments and heightened geopolitical tensions. Brent crude futures climbed 0.34% to $70.28 per barrel, while U.S. West Texas Intermediate (WTI) crude rose 0.33% to $66.93 per barrel as of 0000 GMT. Both benchmarks gained over 2% in the previous session, with Brent hitting its highest level since mid-July.
The recent U.S.-EU trade agreement eased fears of a wider trade conflict, imposing a 15% import tariff on most European goods but avoiding a full-scale trade war. Analysts noted this outcome helped stabilize market sentiment and supported expectations for stronger fuel demand.
Adding to the bullish tone, the United States and China signaled potential progress in their tariff truce. Senior economic officials from both nations met in Stockholm for more than five hours on Monday, with talks scheduled to continue Tuesday. Investors are closely watching whether extended negotiations could reduce trade tensions and boost global energy consumption.
Geopolitical risk also drove prices higher after U.S. President Donald Trump issued a fresh deadline for Russia to advance peace efforts in Ukraine. Trump warned that sanctions on Moscow and buyers of Russian oil could follow if no progress is made within “10 or 12 days.”
Market analysts, including ANZ’s Daniel Hynes, highlighted that fears of tighter Russian oil supplies were amplified by the EU’s latest sanctions, which include a lower price cap on Russian crude and restrictions on refined products processed from Moscow’s oil abroad.
Oil traders remain focused on upcoming trade talks and potential sanctions, factors likely to shape near-term market direction amid improving economic activity and ongoing geopolitical uncertainty.