Oil up on Tuesday

Oil prices rose on Tuesday as investors awaited the outcome of US-China trade talks in London, fuelling hopes of a deal that could boost global fuel demand. Brent crude rose 28 cents to $67.32 a barrel, while US West Texas Intermediate (WTI) climbed 23 cents to $65.52.

Prices gained after US President Donald Trump said negotiations were progressing well. Easing trade tensions could support economic growth and lift demand for oil and other commodities. A favourable US jobs report and ongoing supply risks from Canadian wildfires have also buoyed sentiment, according to Goldman Sachs.

Meanwhile, geopolitical factors added further complexity. Iran announced plans to submit a counter-proposal to the US on a nuclear deal, raising questions over future sanctions and the potential return of Iranian oil to the market. Iran is OPEC’s third-largest producer.

A Reuters survey showed OPEC output rose in May, although increases by Saudi Arabia and the UAE were below their allowed quotas. OPEC+ continues to gradually unwind production cuts, raising concerns of a possible surplus later this year.

Analysts warn that a market-driven strategy by OPEC+ could lead to oversupply in the second half of 2025, exerting downward pressure on prices.