Futures slip, bank earnings ahead, Powell to speak - what’s moving markets
Investing.com-- Oil prices rose slightly in Asian trade on Tuesday, steadying from recent losses as U.S. and Chinese officials attempted to deescalate renewed trade tensions between the economic giants.
Oil had tumbled to a near five-month low late last week after U.S. President Donald Trump announced a 100% trade tariff against China over its rare earth export controls.
In addition to the trade jitters, oil markets were also grappling with fears of a looming supply glut and weakening global demand. A ceasefire between Israel and Hamas saw traders price out some risk premium from oil.
Brent oil futures for December rose 0.4% to $63.55 a barrel, while West Texas Intermediate crude futures rose 0.4% to $59.22 a barrel by 21:30 ET (01:30 GMT).
Oil battered by US-China trade ructions, reconciliation eyed
Oil tumbled last week and struggled on Monday after the U.S. and China appeared set for a renewed trade war.
Trump threatened to impose 100% tariffs on China, drawing a sharp rebuke from Beijing, who threatened retaliatory measures.
But both countries appeared to be making some attempts at reconciliation. U.S. Treasury Secretary Scott Bessent said on Monday that Trump will meet Chinese President Xi Jinping in South Korea later this month.
Bessent also said that Washington and Beijing were in continued talks over more trade progress.
Relations between the U.S. and China appeared to be souring, even after the two signed several trade deals earlier this year. The prospect of economic ructions stemming from a renewed trade war weighed on oil prices.
OPEC sees smaller 2026 oil supply deficit
The Organization of Petroleum Exporting Countries (OPEC) said in its monthly report on Monday that global oil supplies were likely to match demand in 2026, dismissing earlier forecasts of a supply shortfall.
The shift in forecasts comes as the OPEC steadily increases production, with allied countries, including Russia, agreeing to unwind two years of output cuts.
The OPEC forecast steady oil demand in the coming months, and maintained its outlook that global oil demand will increase by 1.3 million barrels per day in 2025.