Oil prices hold near two-week highs as US-China tensions ease

Oil prices hover near two-week highs on Wednesday, supported by a temporary US-China agreement to ease tariffs and a weaker dollar, according to Reuters.

US inflation figures released on Tuesday came in softer than expected, sending the dollar lower against major peers. The weaker greenback made crude more affordable for foreign buyers, lifting oil demand, the news agency reports.

A thaw in US-China trade tensions boosted oil market sentiment. However, analysts at Rystad Energy suggest the agreements are unlikely to significantly alter the sector's trajectory.

The market also found support from US inventory data showing gasoline stocks declined by 1.4 million barrels and distillates dropped by 3.7 million barrels, which is a sign of resilient fuel demand. However, crude inventories unexpectedly surged by 4.3 million barrels, according to American Petroleum Institute figures. Official data from the US Energy Information Administration will be released later Wednesday.