2019.07.3006:37:00UTC+00Oil Prices Rally In Anticipation Of Fed Easing

Oil prices rose about 1 percent on Tuesday as investors await developments in the U.S.-China trade talks and a possible cut in U.S. interest rates.

Benchmark Brent crude rallied 1.1 percent to $64.31 a barrel, though the contract remains on track for a monthly loss of over 3 percent on concerns of a weakening global economy. U.S. crude futures were up 0.95 percent at $57.41 a barrel.

The United States and China are heading into another round of trade negotiations today in Shanghai, though expectations are low for a breakthrough.

Earlier today, the Bank of Japan kept its monetary policy steady, but promised further easing measures if needed to counter downside risks from weaker external demand.

The U.S. Federal Reserve is expected to cut interest rates for the first time since 2008 on Wednesday as concerns rise about the impact of the trade wars and a slowing global economy.

U.S. President Donald Trump on Monday said a small rate cut "is not enough" as the EU and China will further lower interest rates and pump money into their systems, making it much easier for their manufacturers to sell products.

"In the meantime, and with very low inflation, our Fed does nothing - and probably will do very little by comparison. Too bad!"