Oil prices were relatively steady on Tuesday as investors assessed the impact of U.S. tariff threats on global demand against firmer economic data from China that provided some support to crude markets.

Brent and West Texas Intermediate benchmarks held near recent ranges after sliding in early trading amid equity market weakness tied to geopolitical uncertainty.

Traders noted that potential disruption to global trade flows could weaken energy demand, while stronger activity indicators out of China lent a floor to prices due to expectations of sustained industrial and transport fuel use.

Energy equities showed mixed performance, with sector indices underperforming broader markets in some regions, particularly where trade tensions were most acute.

Crude pricing has become increasingly sensitive to geopolitical headlines, reflecting concerns that extended tariff disputes could weigh on global manufacturing and logistics.

Nevertheless, some market participants noted that near-term supply fundamentals, including production discipline by key exporters and inventory draws in major consuming economies, could counterbalance risk-off sentiment.

Refineries and shipping costs have been factored into trader assessments as indicators of demand resilience.

Currency movements related to a weaker U.S. dollar also influenced oil prices, given the commodity’s dollar-denominated global pricing. A softer dollar generally supports higher oil values by improving affordability for non-U.S. buyers, though tariff fears moderated enthusiasm.

Looking forward, oil markets will continue to be shaped by macroeconomic data, trade negotiations, and OPEC+ policy clarity, with volatility likely in early 2026 as geopolitical headlines remain a dominant narrative.

Source: Reuters.