WTI crude oil futures rose to $59.7 per barrel on Tuesday, extending gains from the previous day amid hopes for an easing of US-China trade tensions. US President Trump on Sunday softened his rhetoric against China and signaled openness to a deal with Beijing, two days after threatening additional 100% tariffs on Chinese imports and export controls. Adding to this, Treasury Secretary Scott Bessent said Monday that plans for Trump to meet Chinese President Xi Jinping in South Korea later this month remain on track. Prices also gained after Trump said he is considering providing Ukraine with long-range Tomahawk missiles, raising the risk of further Russian supply disruptions. However, oil gains were limited as cooling tensions in the Middle East reduced risk premiums after Hamas freed Israeli hostages and Israel released Palestinian prisoners. Further pressure came from persistent worries over a supply glut amid rising output from both OPEC+ and non-OPEC+ producers.
