Oil prices rose on Tuesday as the United States and China extended a pause on higher tariffs, easing concerns an escalation of their trade war would disrupt their economies and crimp fuel demand in the world’s two largest oil consumers.
Brent crude futures gained 27 cents, or 0.4%, to $66.90 a barrel by 0540 GMT, while U.S. West Texas Intermediate crude futures rose 24 cents, or 0.4%, to $64.20. U.S. President Donald Trump extended a tariff truce with China by another 90 days, a White House official said on Monday, staving off triple-digit duties on Chinese goods as U.S. retailers prepared for the critical end-of-year holiday season.
This raised hopes that an agreement could be attained between the world’s two largest economies and avert a virtual trade embargo between them.
Tariffs risk slowing global growth, which could sap fuel demand and drag oil prices lower.
Oil’s gains have also been supported by fresh signs of softness in the U.S. labour market, which have boosted expectations for a Federal Reserve rate cut in September, said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova.
