Oil prices rose on Tuesday as investors followed key developments between the U.S. and China, with trade talks raising hopes of easing global tensions and boosting fuel demand worldwide. These shifts in global oil prices highlight Iraq’s ongoing strategy to reduce its dependence on fuel imports by strengthening domestic refining capacity and energy infrastructure.
Brent crude gained 28 cents to reach $67.32 per barrel. At the same time, U.S. West Texas Intermediate crude rose 23 cents, reaching $65.52. These gains reflect growing confidence in the market.
Earlier this week, Brent prices had already hit $67.19, their highest since late April. This increase came after positive signs from the U.S.-China talks, which could lead to a trade agreement. Such a deal would likely boost global fuel demand.
Talks between U.S. and Chinese officials entered a second day in London. Both sides are working to reduce tensions. The discussions cover tariffs and rare earth supplies, which could impact global trade and energy flows.
According to analysts, oil prices rebounded as fears of weak demand started to ease. A strong U.S. jobs report and progress in trade discussions have improved the economic outlook. At the same time, supply risks have grown due to wildfires in Canada, affecting North American output.
U.S. President Donald Trump said he was receiving positive updates from the London negotiations. He added that progress was being made, suggesting that a deal could support economic growth.
If the trade deal succeeds, it could raise demand for commodities like oil. A stronger global economy would mean more energy use, especially in major markets.
In the Middle East, Iran announced plans to present a new nuclear deal proposal. This follows a U.S. offer that Iran rejected. President Trump said the two countries still disagree on uranium enrichment. Any deal could lead to fewer sanctions on Iran, allowing it to export more oil. This would increase global supply and possibly lower prices.
Iran ranks third in oil production among OPEC countries. More exports from Iran could pressure prices, depending on how sanctions change.
Meanwhile, a recent survey showed that OPEC output rose slightly in May. Iraq, however, stayed below its target output to make up for past overproduction. Saudi Arabia and the UAE also raised production, but less than expected.
OPEC+ continues to relax its production limits. This group, which includes Russia, controls about half of the world’s oil. Their decision to increase supply may affect global prices in the coming months.
One expert noted that a long-term shift by OPEC toward a market-driven strategy could lead to excess supply. This surplus may cause oil prices to fall later this year.
In this global context, Iraq’s decision to reduce Iraq’s fuel imports by boosting refining projects appears timely. While other nations adjust output and respond to global demand shifts, Iraq is focusing on domestic solutions. By increasing local fuel production, Iraq can depend less on imported oil and reduce market exposure.