Oil prices were little changed as investors weighed President Donald Trump's delay of high US tariffs on China against the likely outcome of his meeting with Russia's Vladimir Putin.

Brent crude traded near $67 per barrel, while West Texas Intermediate was around $64. Prices remained near two-month lows after a sluggish trading session on Monday and low volumes at the start of the Asian session. Trump signed an order extending a ceasefire with China until November 10, delaying a scheduled tariff increase on Tuesday.

Traders were looking ahead to a meeting between Trump and Putin later this week for signs of easing sanctions on the major oil producer, although the US president on Monday downplayed expectations of a deal to end the war in Ukraine. Crude has lost more than 10% this year as traders grapple with the potential for a surplus to form later this year after OPEC+ reversed supply cuts implemented in 2023, despite signs of slowing economic growth.

"I expect crude oil to remain within its price range until Friday's meeting, but it will be slightly more vulnerable to downward pressure," said Vandana Hari, founder of oil market analysis firm Vanda Insights. Aggregate Brent volumes traded fell to their lowest level since early July on Monday and were well below their daily average, suggesting traders are cautious as they seek further insight into the outlook. Monthly reports from the Organization of the Petroleum Exporting Countries and the U.S. Department of Energy later on Tuesday could help provide insight into the supply-demand balance. (alg)

Source: Bloomberg