Oil soars over 3% on easing U.S.-China trade tensions

NEW YORK (Reuters) – Oil prices rose over 3% on Tuesday after the United States said it will delay imposing a 10% tariff on certain Chinese products, easing concerns over a global trade war that has pummelled the market in recent months. Those Chinese products include laptops and cell phones. The tariffs had been scheduled to start next month. Brent LCOc1 futures were up $2.08, or 3.6%, to $60.65 a barrel by 11:07 a.m. EDT (1507 GMT), while U.S. West Texas Intermediate crude CLc1 was up $1.86, or 3.4%, to $56.79. Prior to Tuesday’s gain, Brent was trading down more than 20% since hitting its 2019 high in April. Earlier Tuesday, the premium of Brent over WTI WTCLc1-LCOc1 fell to its lowest since March 2018. The U.S. dollar index .DXY jumped and bond yields also turned higher after the U.S. Trade Representative said the Trump administration would delay imposing the tariffs on certain Chinese products. Oil prices see-sawed earlier in the day, caught between demand worries and rising global supplies and expectations for deeper production cuts from leading producers. U.S. oil output from seven major shale formations was expected to rise by 85,000 barrels per day (bpd) in September to… continue reading

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