Oil was mixed on Tuesday as tensions in the Gulf appeared to stop short of a military showdown and both sides in the US-China trade talks sounded conciliatory notes, signaling that a breakdown might be avoided. Brent crude futures were at $70.40 a barrel at 0755 GMT, up 38 cents or 0.24 percent. Brent ended the previous session down 0.6 percent. US West Texas Intermediate (WTI) crude futures were at $60.92 per barrel, down 12 cents or 0.2 percent. WTI closed down 1 percent on Monday.
The negotiations between the United States and China appeared headed toward success last week but have largely unraveled over US accusations that Beijing sought vast, last-minute changes.
China on Monday ignored a warning from US President Donald Trump and moved to impose higher tariffs on a range of US goods including frozen vegetables and liquefied natural gas.
But the Chinese government’s top diplomat, State Councilor Wang Yi, indicated on Monday that Beijing hoped for a compromise: Both countries’ negotiating teams have the ability and wisdom to resolve each other’s reasonable demands. Trump on Monday said he expected to speak to Chinese President Xi Jinping at a G20 summit in late June and have probably a very fruitful meeting.
Market participants (are) increasingly having to do their own guesswork and read between the lines to ride the latest wave of volatility in the financial markets, analyst Vandana Hari of Vanda Insights said.