Oil prices rise amid hopes for improved global trade ties

SINGAPORE: Oil prices continued to climb on Tuesday, supported by growing optimism around global trade and geopolitical developments.

Brent crude rose by 24 cents, or 0.34 per cent, to reach $70.28 a barrel by 0000 GMT. Meanwhile, US West Texas Intermediate (WTI) crude increased by 22 cents, or 0.33 per cent, to $66.93 a barrel.

The gains followed a strong session on Monday, when both benchmarks closed over 2 per cent higher. Brent also hit its highest level since July 18.

The upward trend in prices came after a trade agreement between the United States and the European Union eased fears of a broader trade conflict. Although the deal includes a 15 per cent tariff on most EU imports, it averted a full-scale trade war that could have disrupted nearly one-third of global trade and weakened oil demand.

Investor sentiment was also boosted by signs of a possible extension to the US-China trade truce. Senior officials from both countries met in Stockholm on Monday for more than five hours of discussions, which are expected to continue on Tuesday.

Adding to market momentum, US President Donald Trump on Monday set a new deadline of “10 or 12 days” for Russia to show progress in ending the war in Ukraine. He warned that fresh sanctions could be imposed on Russia and on countries that continue to buy its exports if no headway is made.

“Trump’s comments reignited fears that Russia’s oil exports may face new disruptions,” said Daniel Hynes, senior commodity strategist at ANZ.

He noted that the remarks follow the European Union’s latest sanctions package against Russia, which includes a lower price cap on Russian crude and a ban on importing refined products made from Russian oil in third countries.