Crude oil prices experienced a modest uptick today, buoyed by renewed optimism surrounding the United States–China tariff truce extension and speculative growing expectations of a Federal Reserve interest rate cut.
Brent crude futures climbed approximately 26 cents, or 0.4 percent, to settle at around $66.89 per barrel. U.S. West Texas Intermediate (WTI) similarly edged up by about 0.34 percent to reach $64.18 per barrel.
The extension of the 90-day tariff truce between the world’s two largest economies alleviated investor concerns over potential global demand disruptions, setting a more positive tone for oil markets.
Elsewhere, crude futures trading volumes and open interest saw some declines. On the New York Mercantile Exchange (NYMEX), Light Sweet Crude contracts posted lower market activity, with trading volume dropping to roughly 595,060 contracts, down from Friday’s 917,112.
Open interest also fell, decreasing by about 10,910 contracts to 2,076,160.This reduction suggests a slight pullback in speculative positioning, possibly as traders await further clarity on data such as upcoming inflation figures.
Market watchers continue to monitor two key developments closely: first, elevated hopes that the Fed may ease monetary policy if inflation softens, and second, a potential diplomatic breakthrough via the upcoming U.S.–Russia talks scheduled for August 15.
Should this meeting show progress toward resolving the conflict in Ukraine, concerns over Russian oil supply disruptions could ease, strengthening the tone for oil prices.
In summary, crude oil markets are showing renewed strength today, supported by easing trade tensions and the possibility of a more dovish turn by the Federal Reserve.
Nevertheless, cautious trading volumes and falling open interest indicate investors are remaining prudent as they await clearer signals on demand and supply trajectories.
Written By Ian Maleve
