Oil rose after US President Donald Trump said he would pause tariffs for 90 days on dozens of countries that haven't retaliated in his trade war.
Global benchmark Brent crude advanced to almost $65 a barrel after earlier slipping below $60 for the first time since 2021. West Texas Intermediate climbed to above $61.
Trump's move rippled across broader markets, sending equities and commodities surging on the prospect that the conflict in international commerce would ease, reducing the likelihood of a recession. It wasn't immediately clear which nations would receive tariff relief, and China and US continue to escalate their trade war, with Trump raising duties on the nation to 125%.
“A relief rally in broader markets is dragging crude higher, but the pause on other countries is far less impactful when tariffs on China are up as they are a major driver of crude demand growth,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group.
Oil's losses had been compounded by a decision by the OPEC+ alliance to revive output at a faster clip than previously expected. The one-two punch spurred concerns that a previously anticipated oil glut will now be even bigger.
Prices:
WTI for May delivery rose 3.1% to $61.45 a barrel at 1:52 p.m. in New York.
Brent for June settlement climbed 2.9% to $64.67 a barrel.
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