Crude oil prices slipped on Tuesday, but losses were limited as equity markets rallied and as traders hoped Sino-U.S. trade tensions would ease.
The United States said it would extend a reprieve that permits China's Huawei Technologies to buy components from U.S. companies, in a sign of a slight softening of the trade war between both countries.
Brent crude had slipped 3 cents, or 0.05%, to $59.71 a barrel by 0147 GMT, after rising 1.88% on Monday.
U.S. crude was down 15 cents, or 0.3%, at $56.06 a barrel, after gaining 2.44% in the previous session.
The extension sets a very "comforting tone" ahead of next month's U.S.-China trade talks, Stephen Innes, managing partner, VM Markets, said in a note.
"The U.S.-China trade spat has been at the center of the oil market demise, which has sent the global economy to the brink of recession and negatively impacted oil demand forecasts," he said.
A rally in equity markets around the world from growing expectations that global economies would take action to counteract slowing growth also supported oil prices, which often follow stocks.
China's central bank unveiled interest rate reforms which are expected to lower corporate borrowing costs, while Germany's right-left coalition government said it would be prepared to ditch its balanced budget rule and take on new debt to counter a possible recession.
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Meanwhile, a Reuters poll of seven analysts showed that crude oil inventories in the United States fell by 1.9 million barrels in the week to Aug. 16.
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