Crude Oil Prices Hit $65 Per Barrel Following US-China Tariff Cut

Oil prices jumped by 3% early Monday to above $65 per barrel after the United States and China agreed to slash tariffs on each other, easing concerns about global trade and the economy.

In Monday’s early trading, the U.S. benchmark, WTI Crude, was up by 3.13% at $62.93, while the international benchmark, Brent Crude, moved up above $65 per barrel and traded at $65.79.

US-China Trade Talks Outcome

Early on Monday, the White House announced that the United States and China would each lower tariffs by 115% while retaining an additional 10% tariff. both countries also agreed to suspend the tariffs for 90 days, except the 10% baseline rate.

“After taking the aforementioned actions, the Parties will establish a mechanism to continue discussions about economic and trade relations,” the United States and China said in a joint statement at the end of the talks in Geneva this weekend.

The global price of crude oil has been in a state of flux in recent times following fears of a prolonged economic fallout hurting global demand. It is now expected that WTI and Brent crude may take a key resistance near $65 and $69, respectively. There is however fears in certain quarters that the 90 day tariff pause by both countries may not put an end to the ongoing trade war which may end up hurting global demand for crude oil.