Oil prices rise as US-China trade war escalates

Oil prices rose on Tuesday, October 14, 2025, as early signs of a thaw in U.S.-China trade tensions bolstered market sentiment.

United States President Donald Trump remains committed to meeting Chinese President Xi Jinping in South Korea this month, Treasury Secretary Scott Bessent said on Monday, as both countries try to defuse tension over tariff threats and export controls.

Bessent said there were substantial communications between the two sides over the weekend and more meetings were expected.

Brent crude futures rose 22 cents, or 0.4%, to $63.54 a barrel by 0405 GMT, while U.S. West Texas Intermediate crude was at $59.71 a barrel, up 22 cents, or 0.4%.

In the previous session, Brent settled 0.9% higher, and U.S. WTI closed up 1%.

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“Oil steadied as investors weighed U.S.–China tensions against demand,” Saxo Bank analysts said in a note, adding that Trump had softened his tone and signalled openness to a deal.

The prospect of improved trade ties between the world’s two largest economies has historically buoyed oil markets, as investors anticipate stronger global growth and increased fuel demand.

However, recent developments, such as Beijing’s expanded export controls on rare earths and Trump’s threats of 100% tariffs and software export curbs from November 1, have weighed on sentiment.

Last week, oil prices posted weekly losses and touched their lowest levels since May, Reuters reported.

In its monthly report on Monday, the Organization of the Petroleum Exporting Countries, and allies including Russia, said the oil market’s supply shortfall would shrink in 2026, as the wider OPEC+ alliance proceeds with planned output increases.

The Star