Oil prices rose on Tuesday, supported by U.S.-China trade talks and a drop in crude shipments from Saudi Arabia to China.
Brent crude was up 23 cents to $67.27 a barrel, and U.S. West Texas Intermediate crude increased 17 cents to $65.46.
U.S. and Chinese officials met for a second day in London to discuss trade and export controls. The talks follow a recent agreement in Geneva to roll back some tariffs and are seen as key to easing global tensions and supporting economic growth.
President Donald Trump said he was receiving positive updates from the U.S. team in London. A trade agreement between the two countries could improve the global economic outlook and increase demand for oil.
On the supply side, Saudi Aramco will ship about 47 million barrels of crude to China in July, which is 1 million barrels less than the allocation for June. This reduction comes as OPEC+ continues to increase output in measured steps.
OPEC+ plans to boost production by 411,000 barrels per day in July. A survey showed that OPEC’s May output increase was limited, with Iraq producing less to make up for earlier overproduction, and Saudi Arabia and the UAE increasing production by less than agreed.
Concerns over further OPEC supply hikes remain, though the lower Saudi exports suggest the extra supply may be limited. At the same time, wildfires in Canada have raised concerns over North American oil output.
In a separate development, Iran said it would make a counter-offer to a U.S. proposal for a nuclear deal. Disagreements remain over whether Iran can continue enriching uranium. If sanctions are lifted, Iran could export more oil, which may affect global prices.
