Oil traded near a six-week low on easing tensions in the Middle East, although improving U.S.-China trade relations offered some support.
Futures in New York were steady after falling more than 8% over the past five days as the threat of an outright war between the U.S. and Iran receded. Asian stocks rose after the White House lifted its designation of China as a currency manipulator two days before the sides are set to sign a phase-one trade deal.
While the limited trade agreement is aiding financial market sentiment, the oil market still faces the prospect of being over-supplied this year due to new production from mainly non-OPEC countries. Saudi Arabian Energy Minister Abdulaziz bin Salman said Monday that the group and its allies remain focused on using output cuts to reduce oil inventories.
West Texas Intermediate crude for February delivery added 13 cents, or 0.2%, to $58.21 a barrel on the New York Mercantile Exchange as of 9:58 a.m. in Singapore. It fell 1.6% on Monday to close at the lowest level since Dec. 3.
Brent futures for March settlement rose 0.3% to $64.40 a barrel on the ICE Futures Europe exchange after dropping 1.2% on Monday. The global benchmark crude traded at a $6.17 premium to WTI for the same month.
Source : Bloomberg