Oil prices settle up at 2-week high as US, China ease tariffs
Oil prices rose about 1.5% to settle at a two-week high on Monday, after the U.S. and China agreed to temporarily slash tariffs, raising hopes of an end to the trade war between the world's two biggest economies.
Brent crude futures rose $1.05, or 1.6%, to settle at $64.96 a barrel. U.S. West Texas Intermediate (WTI) crude gained 93 cents, or 1.5%, to settle at $61.95.
Both benchmarks notched their highest settlements since April 28.
The U.S. and China tapped the brakes on tariffs, sending Wall Street stocks, the U.S. dollar and crude prices sharply higher on hopes the world's two biggest oil consumers can end a trade war that has stoked fears of recession.
In April, oil prices fell to a four-year low as investors worried the U.S.-China trade war could depress economic growth and oil demand. Also, the Organization of the Petroleum Exporting Countries (OPEC) decided to boost oil output by more than previously expected.
In Saudi Arabia, the biggest producer in OPEC, oil giant Aramco, said it expects oil demand to remain resilient this year and sees further upside if the U.S. and China resolve their trade dispute.
In Iraq, OPEC's No. 2 producer, crude exports were on track to decline to around 3.2 million barrels per day (bpd) in May and June, which would be a significant reduction from previous months.
Oil prices gained support after Norwegian energy firm Equinor, said it temporarily halted output from the Johan Castberg oilfield in the Arctic Barents Sea to make repairs.
In the Black Sea, Black Sea CPC Blend exports via the Caspian Pipeline Consortium system were on track to ease to 1.5 million bpd in May from 1.6 million bpd in April.
In Mexico, PMI, trading arm of state-owned energy company Pemex, anticipates a reduction in crude exports this year as more will be sent to local refineries, especially the new Olmeca refinery.
Source : Reuters
