WTI crude oil futures rose to $63.8 per barrel on Tuesday, a fourth straight gain to test the highest level in over one month, amid fresh sanction threats against Iran and an improved outlook on global trade flows.
In a speech before Saudi officials, US President Trump reiterated the threat of sanctions against Iranian oil should they not agree to their nuclear deal.
In turn, concerns of widespread economic pain eased after the US and China agreed to momentarily lower tariffs against each other.
However, uncertainty remains over what will happen once the 90-day truce expires.
The rebound in futures took place despite Saudi Arabia’s push to raise oil production and penalize members failing to meet output targets.
OPEC’s total output has risen more than expected since April, with production in May likely up by 411,000 barrels per day.
Oil is still down 10% since early April, when reciprocal US tariffs raised fears about weaker global growth and reduced fuel demand.