Oil Prices Rise as Hopes Grow for Easing U.S.–China Trade Tensions

PUKMEDIA

Oil prices.

Oil prices rose on Tuesday, 14 October 2025, amid signs of a potential thaw in U.S.–China trade relations, boosting investor confidence and easing concerns over global fuel demand.

U.S. President Donald Trump remains committed to meeting Chinese President Xi Jinping in South Korea later this month, Treasury Secretary Scott Bessent said on Monday, as both sides seek to ease tensions over tariff threats and export controls.

Bessent noted that substantial communications had taken place between Washington and Beijing over the weekend, with further meetings expected soon.

According to Reuters, Brent crude futures rose by 22 cents, or 0.4%, to $63.54 per barrel by 04:05 GMT, while U.S. West Texas Intermediate (WTI) increased by 22 cents, or 0.4%, to $59.71. Both benchmarks had posted gains in the previous session, with Brent up 0.9% and WTI 1%.

Historically, expectations of improved trade ties between the world’s two largest economies have supported oil prices, reflecting optimism for stronger global growth and energy consumption.

However, recent developments — including Beijing’s expanded export controls on rare earths and Trump’s threats of 100% tariffs and software export restrictions from 1 November — have kept markets cautious.

Last week, oil prices posted losses, hitting their lowest levels since May. President Trump had also cast doubt on the likelihood of meeting President Xi during the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, saying on Truth Social, “Now there seems to be no reason to do so.”

Despite a more conciliatory tone from both sides, analysts expect U.S.–China relations to remain a key factor influencing market sentiment.

China further expanded its rare earth export restrictions on Thursday, ahead of the anticipated Trump–Xi talks.

Limiting further price gains, President Trump on Monday declared an end to the two-year-long Gaza war, which had contributed to volatility in Middle Eastern markets.

In its latest monthly report, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, projected that the global oil supply shortfall would narrow in 2026 as the wider OPEC+ group proceeds with planned output increases.



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