Investing.com - Crude prices were higher on Tuesday as the U.S. and China continued their two-day trade meeting, increasing hopes that Beijing can sustain its economy.
Chinese and U.S. officials are in the midst of trade talks in Beijing, which U.S. officials say are likely to lead to a resolution.
Investor hope that the countries can resolve their differences was boosted after U.S. President Donald Trump tweeted that “talks with China are going very well!”
The two countries have until March 1 to make a deal before the U.S. increases tariffs on Chinese imports. China is also the biggest importer of crude.
West Texas crude oil futures for February jumped 1.44% to $49.22 a barrel as of 8:58 AM ET (13:58 GMT). Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., rose 1.4% to $58.13 a barrel.
The price was driven higher by news that Turkey resumed imports of Iranian crude oil after a one-month hiatus. The U.S. imposed sanctions against Iran in November, but gave Turkey and others a waiver to continue importing. Turkey is now able to import about 60,000 barrels per day (bpd), compared to a prior import number of 200,000 bpd.
Meanwhile, Saudi Arabia is planning to cut crude exports to around 7.1 million bpd by the end of January, The Wall Street Journal reported.
Still, global headwinds could slow the demand for fuel, as slowing economic growth and trade uncertainties have left some investors on edge. And increase in OPEC cuts have done nothing to make a dent in U.S. oil supply, which rose by 2 million bpd last year to a world record 11.7 million bpd.
In other energy trading, gasoline RBOB futures fell 0.15% to $1.3452 a gallon, while heating oil increased 1% to $1.8043 a gallon. Natural gas futures jumped 1.29% to $2.995 per million British thermal units.