Ammon News - Oil prices retreated on Wednesday as traders eyed a potential jump in U.S. crude inventories, though prices held near two-week highs amid optimism after the United States and China agreed to temporarily lower their reciprocal tariffs.

Brent crude futures fell 39 cents, or 0.6%, to $66.24 a barrel by 0400 GMT. U.S. West Texas Intermediate (WTI) crude slipped 36 cents, or 0.6%, to $63.31. Both benchmarks had climbed more than 2.5% in the previous session.

The two largest economies agreed on Monday to pause their trade war for at least 90 days, with the United States cutting tariffs to 30% from 145% and China slashing duties on U.S. imports to 10% from 125%.

Crude stocks were up by 4.3 million barrels in the week ended May 9, market sources said, citing American Petroleum Institute figures on Tuesday.

Official weekly inventory data from the U.S. Energy Information Administration is due on Wednesday at 10:30 a.m. EDT (1430 GMT). Reuters