Oil prices recorded modest gains on Tuesday as renewed optimism over trade relations between the United States and China lifted global market sentiment. However, concerns over weak demand projections limited further upward movement.
Brent crude futures traded at $61.06 per barrel, a 0.4% increase from Monday’s close of $60.80. Similarly, West Texas Intermediate (WTI), the U.S. benchmark, rose 0.5% to $57.18, compared with $56.92 in the prior session.
The market upturn followed encouraging signals from both Washington and Beijing, suggesting a possible softening of tone in their upcoming trade discussions scheduled to hold in South Korea.
U.S. President Donald Trump expressed optimism on Monday, stating his expectation for a “very fair and strong trade deal” with Chinese President Xi Jinping during the meeting.
Despite the renewed optimism, oil prices were tempered by a subdued global demand outlook detailed in the International Energy Agency (IEA) Oil Market Report released last week.
According to the IEA, global oil demand growth for 2025 has been revised downward by 35,000 barrels per day (bpd). Demand is now expected to rise by 710,000 bpd to 103.84 million bpd, down from an earlier estimate of 740,000 bpd.
Looking ahead to 2026, the agency projects a smaller annual increase of 700,000 bpd, bringing total demand to 104.54 million bpd — a slowdown attributed mainly to weaker consumption across advanced economies.
Market analysts say sustained oil price gains will depend largely on the outcome of the U.S.-China negotiations and whether demand recovery across Asian economies strengthens in the months ahead.
