Crude oil prices showed gains and opened higher on Tuesday, with China's plans to send officials to the U.S. later this week to resume trade talks despite negotiations hitting a wall over the weekend.
International benchmark Brent crude was trading at $71.22 per barrel at 0637 GMT for a 0.4% increase after closing Monday at $70.93 a barrel.
American benchmark West Texas Intermediate was at $62.41 a barrel at the same time, marking a 0.16% gain after ending the previous session at $62.31 per barrel.
Sino-American trade talks soured after U.S. President Donald Trump toughened his stance on tariffs imposed by the U.S. on goods that it imports from China.
Trump said via Twitter on Sunday that he will increase the tariff rate on $200 billion worth of Chinese goods from 10% to 25% on Friday, and the U.S. will impose 25% tariffs on an additional $325 billion of Chinese goods "shortly."
"The United States has been losing, for many years, 600 to 800 Billion Dollars a year on Trade. With China we lose 500 Billion Dollars. Sorry, we’re not going to be doing that anymore!" Trump said via Twitter on Monday.
The U.S. goods and services trade deficit with China was $378.6 billion in 2018, according to Office of the U.S. Trade Representative.
Despite the renewed tensions between the world's two largest economies, Beijing stayed positive over resuming negotiations.
U.S. Trade Representative Robert Lighthizer said Monday that Chinese Vice Premier Liu He would head a group of officials from Beijing to Washington on Thursday.
China's willingness to resume trade talks provided a fresh sense of optimism for investors who believe that a failure of U.S.-Sino negotiations could hamper the global economic growth, lead to lower oil demand worldwide and push crude prices lower.
By Ovunc Kutlu