Oil Steady Amid Extension of US-China Tariff Ceasefire
Oil prices held steady on Tuesday after the United States and China agreed to extend the pause in tariff increases until November 10. This agreement eased concerns about an escalating trade war that could hamper oil consumption. Brent crude fell slightly by 2 cents to $66.61 per barrel, while WTI weakened 0.2% to $63.86 per barrel. The extension of the tariff ceasefire raised hopes for a trade deal between the world's two largest economies, a failure of which could hamper global growth and depress energy demand.
Oil price sentiment was also supported by signs of weakness in the US labor market, which fueled expectations of a Fed interest rate cut in September. Interest rate cuts typically boost economic activity and increase oil demand. The market now awaits the release of US inflation data, which could influence the direction of Fed policy.
On the geopolitical front, the meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska on Friday is in the spotlight. The meeting is expected to discuss a possible end to the war in Ukraine. If a ceasefire or peace agreement is reached, Trump could potentially suspend secondary tariffs on Russian oil buyers like India for another two weeks. However, if negotiations fail, stricter sanctions on Russian oil buyers, including China, are likely to be imposed. (ayu)
Source: Newsmaker.id
