09:15 AM EST, 11/26/2024 (MT Newswires) -- Oil traded higher early on Tuesday following as focus moved to this weekend's OPEC+ meeting and the impact of Donald Trump's tariff threats.

West Texas Intermediate crude oil for January delivery was last seen up $0.66 to US$69.60 per barrel, while January Brent crude, the global benchmark, was up US$0.65 to US$73.66.

Prices fell 3% on Monday following a report Israel and Lebanon agreed to a ceasefire. While the two countries appear close to a deal it has not yet been approved. The BBC reported that Israel's cabinet is meeting Tuesday to consider an agreement for a 60-day ceasefire that would end the country's fighting with the Iran-backed Hezbollah militia.

Easing geopolitical risk returns the focus to weak demand from China and rising supply. OPEC+ members will meet remotely on Sunday to decide on whether to go ahead with plans to begin unwinding 2.2-million barrels per day of voluntary production cuts with monthly supply additions of 180,000 bpd. The cartel has delayed the plans to return the barrels three times and the Dec.1 meeting could see the group again delay the plan as oil prices remain rangebound.

President-elect Donald Trump said he plans to slap a 25% tariff on imports from Mexico and Canada, the No.1 source of U.S. oil imports, when he assumes office, along with an additional 10% tariff on imports from China. Canada supplies around 3.8-million barrels per day to U.S. refiners and Mexico's exports stood at 406,000 barrels per day at last report. There were no details in Trump's post on whether the tariff threat would apply to oil.

"Crude prices remain stuck near key support levels as traders assess the impact of a potential ceasefire between Israel and Hezbollah, Trump's tariffs' impact on growth, and an OPEC+ overhang of unwanted barrels at a time when demand remains sluggish," Saxo Bank noted.