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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.

Brent futures fell 17 cents, or 0.3%, to settle at $66.87 per barrel.

WTI declined 31 cents, or 0.5%, to close at $64.98. 

The dip came as trade negotiations between Washington and Beijing extended into a second day in London, with diplomats locked in marathon discussions over conflicting export controls. Hopes of a breakthrough remain tempered by lingering mistrust and the fragility of the current tariff truce.

Adding a fresh layer of complexity, an appeal US court ruling on Tuesday cleared the way for President Donald Trump to resume his global tariff agenda — a development that has injected new uncertainty into already delicate trade dynamics.

Further weighing on sentiment, the World Bank cut its global growth forecast for 2025 to 2.3%, down from a previous estimate of 2.7%. The revision cited escalating tariffs and widespread policy uncertainty as major drags on investment and trade, warning that these factors represent a "significant headwind" for nearly all economies.

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