Crude prices were largely unchanged in Asian trading on Tuesday as investors awaited high-stakes U.S.-Russia negotiations that could pave the way for an end to the conflict in Ukraine and potentially ease the strain on major oil-importing nations such as India and China.
Sentiment was also supported by news that Washington and Beijing had agreed to prolong their current trade truce by an additional 90 days, easing fears of a renewed tariff battle. However, traders remained cautious ahead of key U.S. inflation figures expected later in the day, limiting any upside in prices.
By 21:52 ET (01:52 GMT), Brent crude futures for October delivery were up 0.2% at $66.74 per barrel, while West Texas Intermediate (WTI) crude also added 0.2% to trade at $63.21.
Trade truce extension offers a modest lift
Oil markets drew mild support from the latest U.S.-China agreement, which extends the May–June trade ceasefire for another three months and maintains reduced tariff rates between the two economies.
Without the extension, the temporary deal was set to expire Tuesday, opening the door for both countries to reimpose tariffs that earlier this year exceeded 100%. Instead, officials from both sides—along with U.S. President Donald Trump—struck an optimistic tone, suggesting progress toward a more lasting trade settlement.
Still, uncertainty lingers. Tariffs introduced last week by Washington remain in place, raising questions over whether they could dampen global economic momentum and weaken oil demand in the months ahead.
Diplomatic spotlight shifts to U.S.-Russia meeting
Markets are also closely tracking preparations for a meeting between Trump and Russian President Vladimir Putin in Alaska this Friday, where efforts to broker a resolution to the Ukraine war will top the agenda.
The talks follow fresh threats from Trump of harsher measures against Russia’s oil sector, as well as steep new tariffs aimed at India and China—Moscow’s two biggest energy buyers. He floated tariffs as high as 50% on Indian imports, with China potentially facing similar penalties.
While such measures could disrupt global crude flows if India and China sought alternative suppliers, market concerns have eased slightly ahead of the scheduled talks. Ukraine has already stated it will reject any agreement requiring territorial concessions, but any sign of de-escalation could unlock additional Russian oil exports, boosting worldwide supply.
Inflation data also on the radar
Before the diplomatic drama unfolds, oil traders will be watching Tuesday’s release of U.S. consumer price index data for July. The numbers could offer fresh clues on the outlook for fuel demand in the world’s largest oil-consuming economy.
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