International crude oil prices edged higher on Tuesday as the United States and Asian giants agreed to extend a 90-day tariff suspension, easing market concerns about trade tensions. Brent crude futures were flat at $66.65 a barrel, while U.S. West Texas Intermediate (WTI) futures fluctuated slightly to $63.89 a barrel.

The US said the extension of the tariff suspension is intended to avoid impacting the year-end holiday consumer season and to provide time for further negotiations between the two sides. The market generally believes that this move is likely to facilitate the conclusion of an agreement, avoid pressure on economic growth in both countries, and thus support global crude oil demand.

Market focus is also on the August 15 Alaska meeting between the US and Russian presidents, which is aimed at seeking to end the Russia-Ukraine conflict while avoiding tougher secondary sanctions on Russian oil buyers, including Asian giants and India.

"Any Russia-Ukraine peace deal would remove the long-standing risk of Russian oil supply disruptions from the market," said Daniel Hynes, senior commodity strategist at ANZ.

The United States had previously set a deadline for Russia to agree to a ceasefire or face sanctions on its main buyers and urged India to reduce its Russian oil imports. Meanwhile, the United States was also pressuring Asian giants to stop buying Russian oil, but the risk of sanctions has significantly decreased as the US-Russia meeting approaches.

In addition, the market will also focus on the upcoming inflation data from the United States, which may affect the Federal Reserve's monetary policy expectations. If the data releases a signal of an interest rate cut, crude oil prices may receive further support.

From a technical perspective, the daily chart of U.S. crude oil shows that the price has found support around $63, the short-term moving average has begun to turn upward, and the MACD red column continues to grow, indicating that the bullish momentum is strengthening.

If it breaks through the recent resistance level of $64.80, oil prices are expected to rise to the $66 line; on the contrary, if it falls below the $63.00 support, it may trigger a new round of correction.

Editor's opinion:

The current situation suggests that the tariff suspension and the anticipated peace talks between Russia and Ukraine are both providing short-term support for the oil market. However, the actual impact depends on the outcome of the negotiations and the direction of Federal Reserve policy. If the negotiations break down or inflation data exceeds expectations, oil prices could come under renewed pressure. Therefore, it is important to closely monitor the simultaneous evolution of political and economic signals.