Oil retreats despite tariff pause as US-China trade war escalates
Oil prices retreated on Thursday as U.S. President Donald Trump ramped up a trade war with China, even as he announced a 90-day pause on tariffs aimed at other countries.
Brent futures fell 77 cents, or 1.18%, to $64.71 a barrel by 0320 GMT, while U.S. West Texas Intermediate crude futures fell 65 cents, or 1.04%, to $61.70.
Following the tariff pause for most countries, the benchmark crude contracts had settled 4% higher on Wednesday after dropping as much as 7% during the session.
Trump, however, raised the tariff rate for China to 125% effective immediately, from the previously announced 104% tariff that had kicked off earlier on Wednesday.
The higher U.S. tariffs on China leave plenty of uncertainty in the markets, ING commodities strategists said in a research note on Thursday.
'This uncertainty is still likely to drag on global growth, which is clearly a concern for oil demand,' they said. Reuters
Oil prices retreated on Thursday as U.S. President Donald Trump ramped up a trade war with China, even as he announced a 90-day pause on tariffs aimed at other countries.
Brent futures fell 77 cents, or 1.18%, to $64.71 a barrel by 0320 GMT, while U.S. West Texas Intermediate crude futures fell 65 cents, or 1.04%, to $61.70.
Following the tariff pause for most countries, the benchmark crude contracts had settled 4% higher on Wednesday after dropping as much as 7% during the session.
Trump, however, raised the tariff rate for China to 125% effective immediately, from the previously announced 104% tariff that had kicked off earlier on Wednesday.
The higher U.S. tariffs on China leave plenty of uncertainty in the markets, ING commodities strategists said in a research note on Thursday.
'This uncertainty is still likely to drag on global growth, which is clearly a concern for oil demand,' they said. Reuters
Oil prices retreated on Thursday as U.S. President Donald Trump ramped up a trade war with China, even as he announced a 90-day pause on tariffs aimed at other countries.
Brent futures fell 77 cents, or 1.18%, to $64.71 a barrel by 0320 GMT, while U.S. West Texas Intermediate crude futures fell 65 cents, or 1.04%, to $61.70.
Following the tariff pause for most countries, the benchmark crude contracts had settled 4% higher on Wednesday after dropping as much as 7% during the session.
Trump, however, raised the tariff rate for China to 125% effective immediately, from the previously announced 104% tariff that had kicked off earlier on Wednesday.
The higher U.S. tariffs on China leave plenty of uncertainty in the markets, ING commodities strategists said in a research note on Thursday.
'This uncertainty is still likely to drag on global growth, which is clearly a concern for oil demand,' they said. Reuters
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Oil retreats despite tariff pause as US-China trade war escalates
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