Oil prices retreated slightly on Tuesday but remained close to seven-week highs, as traders balanced cautious optimism over US–China trade talks with renewed concerns about global economic growth and tariff risks.
China’s manufacturing activities shrank for a second consecutive month in May, official data showed, underscoring ongoing weakness in industrial demand even as trade sentiment showed tentative signs of recovery.
The rally came as US job growth in May exceeded economist expectations, easing fears of a slowdown in oil demand and propelling broader market sentiment. Diesel futures, often seen as a bellwether for industrial activity, hit a two-week high in response.