West Texas Intermediate (WTI) crude oil edged higher during Asian trading on Tuesday, hovering around $64.65 per barrel as optimism over US-China trade negotiations and a softer US Dollar buoyed sentiment. The rally brought WTI to its highest level in nearly seven weeks.
Markets are closely watching ongoing trade talks between the United States and China, held in London, for signs of progress. Although the first day ended without major breakthroughs, investor sentiment remained upbeat. US President Donald Trump struck a positive tone, stating the talks “should go very well,” reinforcing hopes of a deal that could bolster global economic growth and crude demand.
Geopolitical tensions also continue to support oil prices. Early Tuesday, Russia launched another large-scale attack on Kyiv and Odesa, involving ballistic missiles and drones. The renewed violence in Ukraine, along with persistent unrest in the Middle East, is fueling concerns over supply disruptions, keeping upward pressure on crude markets.
However, gains may be tempered by supply-side developments. The Organization of the Petroleum Exporting Countries (OPEC) and its allies have announced a planned increase in oil output by 411,000 barrels per day in July. The expanded production quota could limit further upside for WTI, potentially easing concerns over tight supply.
