Investing.com– Oil prices inched higher in Asian trading on Tuesday, helped by President Donald Trump’s potential pause on auto tariffs and a rebound in China’s crude imports, while markets eyed U.S.-Iran nuclear talks for clues on the demand outlook.

As of 22:05 ET (02:05 GMT), Brent Oil Futures expiring in June rose 0.2% to $65.02 per barrel, while West Texas Intermediate WTI crude futures gained 0.3% to $61.25 per barrel.

Both contracts settled little changed on Monday and remained close to four-year lows hit last week.

“The market is digesting fast-moving policy developments on the tariff front, while balancing them with nuclear talks between the US and Iran. Clearly, the market is more focused on tariffs and what they mean for oil demand,” ING analysts said in a note.

Trump indicates potential pause on auto tariffs

President Trump on Monday indicated potential exemptions from the 25% tariffs on foreign vehicle imports, particularly from countries like Mexico and Canada.

Before this, the administration announced exclusions for certain electronics, including smartphones and laptops, primarily from China.

These developments have eased some market concerns over escalating trade tensions.

However, investors were still cautious as Trump’s administration was moving forward with plans to potentially impose tariffs on semiconductor and pharmaceutical imports. The investigation into these tariffs was announced Monday through notices posted to the Federal Register by the Commerce Department.

China crude imports jump in March; US-Iran talks in focus

In China, March crude oil imports saw a sharp rebound, driven by increased purchases of Iranian and Russian oil ahead of anticipated U.S. sanctions.

While China’s key commodity imports were weak in the first quarter of 2025, the March uptick provided some optimism.

Meanwhile, indirect talks between the U.S. and Iran commenced on April 12 in Muscat, Oman, aiming to reach a nuclear peace agreement.

The outcome of these talks could influence the trajectory of U.S. sanctions on Iranian oil exports.

OPEC lowers global oil demand growth forecasts over US tariffs

The Organization of the Petroleum Exporting Countries (OPEC) on Monday revised its global oil demand growth forecast for 2025, reducing it by 150,000 barrels per day (bpd) to 1.30 million bpd.

This adjustment reflected weaker-than-expected first-quarter data and the impact of new U.S. trade tariffs.

In its monthly report, OPEC also lowered its projections for global economic growth for both 2025 and 2026.

The International Energy Agency is set to release its monthly oil report later today, which will reveal whether it has lowered demand estimates in response to the recent escalation in tariffs.