Oil prices declined on Tuesday amid uncertainty over trade policies between the US and China, while easing geopolitical tensions in the Middle East further pressured markets.
Brent crude was trading at $62.68 per barrel at 09.54 a.m. local time (0654 GMT), down 0.7% from Monday’s close of $63.18. US benchmark West Texas Intermediate (WTI) fell 0.8% to $58.70 from $59.21.
Prices came under pressure after US President Donald Trump threatened higher tariffs on Chinese goods in response to Beijing’s export curbs on rare earth elements. He later said a 100% additional tariff would take effect on Nov. 1, doubling current duties.
Trump subsequently said there was no need to worry about China, expressing confidence that "everything will work out."
US Vice President JD Vance also stated that Washington is ready to negotiate if China is "willing to act reasonably," but warned that otherwise, the US has "many more cards to play."
Despite the more moderate remarks from US officials, uncertainty over the course of trade talks between the world's two largest economies continues to weigh on demand outlooks.
Additionally, easing geopolitical tensions in the Middle East are contributing to the downward trend in prices.
On Monday, the Sharm el-Sheikh Peace Summit was held in Egypt with the participation of several leaders to discuss the Gaza cease-fire agreement.
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) maintained its forecasts for global oil demand growth for this year and next, citing steady demand in its oil market report released Monday.
International Energy Agency (IEA) is expected to release its oil market report later Tuesday.
Markets will be closely watching the IEA's demand forecasts and supply projections amid ongoing concerns over global supply and demand balances.
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr