Crude oil’s overnight rally continues into Tuesday in anticipation of Federal Reserve’s rate cut during its upcoming meeting scheduled to start later today. At the time of writing, WTI crude oil is trading at around $57.15 per barrel.

Fed’s rate cut sentiments have dominated global financial markets in the past few weeks on the back of weak economic data and low inflation rates that have plagued the US economy. If the Fed cuts rates, it would be for the first time in over a decade – the last rate cut took place during the financial crisis.

In addition to the Fed’s meeting, the US-China trade talks in Shanghai can also impact crude oil prices in the coming days. After several months, US and China’s trade teams are meeting face-to-face again, as they try to negotiate a trade deal.

Crude oil prices are also supported by the ongoing tensions in the Middle East surrounding Iran. Over the past few weeks, there have been several incidents in the Strait of Hormuz between Iranian Revolutionary Guards and oil tankers. As a result, Europe and the US are contemplating ways to improve maritime security in the region to ensure safety of their shipping interests.