Crude oil prices declined on Tuesday as geopolitical tensions in the Middle East eased and renewed uncertainty over US-China trade relations dampened sentiment in global energy markets.
Brent crude slipped 0.7% to $62.68 per barrel from Monday’s $63.18, while US benchmark West Texas Intermediate (WTI) fell 0.8% to $58.70 from $59.21.
Market pressure intensified after US President Donald Trump threatened to impose 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 November 1, doubling existing duties. Trump attempted to reassure markets, noting there was “no need to worry about China,” expressing confidence that “everything will work out.”
US Vice President JD Vance added that Washington remains open to negotiation if Beijing is “willing to act reasonably,” though he warned the US has “many more cards to play.”
These mixed signals have kept traders cautious, with demand outlooks uncertain as the world’s two largest economies navigate a tense trade standoff.
Meanwhile, easing geopolitical tensions in the Middle East further pressured prices. The Sharm el-Sheikh Peace Summit in Egypt brought together several leaders on Monday to discuss the Gaza cease-fire agreement, calming investor concerns over potential supply disruptions.
The Organization of the Petroleum Exporting Countries (OPEC) maintained its forecasts for global oil demand growth this year and next, citing steady consumption in its latest oil market report.
Traders are now awaiting the International Energy Agency’s (IEA) upcoming report for further clarity on demand and supply projections amid global economic headwinds.
