U.S. soybean oil futures climbed more than 2% on Tuesday after President Donald Trump unexpectedly announced a trade deal with India, in a sign of optimism that a truce could open the way for billions of dollars of American products to hit the world’s most populous nation.

Oil fell in the morning Asian session amid signs of easing supply risks.

Crude oil futures ease as diplomacy efforts cap gains, with inventory draws and OPEC production risks supporting the oil outlook in this market analysis.

The current oil price volatility is risk-driven rather than market balance driven. Therefore any price uptick will likely and rapidly unwind should tensions ease.

By Georgina McCartney HOUSTON, Jan 27 (Reuters) - Oil prices rose by more than $1 a barrel on Tuesday as producers reeled from a winter storm that hobbled crude production and drove U.S. Gulf Coast crude exports to zero over the weekend.

WTI holds steady as Middle East tensions and a sharp API draw support crude oil prices, lifting the oil outlook while traders watch key trend and inventory analysis.

Crude oil futures traded lower on Friday morning after the US eased some sanctions on the oil industry in Venezuela.