10.04.201808:44:00UTC+00Crude Oil Rallies On U.S.-China Pillow Talk

Crude oil futures rose sharply Tuesday morning amid renewed hopes the U.S. and China can avoid a trade war.

After a conciliatory tweet about friendship from Donald Trump, Chinese Premier Xi said he want to open his country's market to more foreign products.

WTI light sweet oil was up $1.30 at $64.73 a barrel.

Traders will be keeping an eye on U.S. oil inventories data over the next few days.

In economic news, producer prices in the U.S. increased by more than expected in the month of March, according to a report released by the Labor Department on Tuesday.

The producer price index rose by 0.3 percent in March after edging up by 0.2 percent in February. Economists had expected producer prices to inch up by 0.1 percent.