Oil gains from four-year low after entering oversold territory

Oil prices surged from a four-year low on Tuesday. According to Bloomberg, technical analysis suggests that crude recently entered oversold territory.

After a nearly 10% slump over six sessions, Brent advanced to trade above $61 a barrel. Meanwhile, WTI rose to $58 a barrel.

US President Donald Trump acknowledged the possibility of easing tariffs on Chinese goods, stating that current duties are significantly disrupting global trade. However, Bloomberg notes that no new talks between Washington and Beijing are expected in the near term.

Despite getting a short-term boost from the return of China from holidays and optimism around trade talks, the oil market continues to face pressure. According to ING's Warren Patterson, investor concerns persist due to uncertainty over global demand and OPEC+ policy decisions.