Oil Jumps Sharply on U.S. Tariff Delay

Published 13/08/2019, 16:27
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By Barani Krishnan

By Barani Krishnan

Investing.com – Oil prices jumped more than 4%, extending the rally for a fourth-straight day despite a weak start on Tuesday as the Trump Administration’s decision to delay additional tariffs on some Chinese imports led to widespread hope that the trade war between the two countries was on the mend.

Investing.com – Oil prices jumped more than 4%, extending the rally for a fourth-straight day despite a weak start on Tuesday as the Trump Administration’s decision to delay additional tariffs on some Chinese imports led to widespread hope that the trade war between the two countries was on the mend.

New York-traded West Texas Intermediate crude jumped 2.37, or 4.3%, at $57.30 per barrel by 11:50 AM ET (15:50 GMT) after falling as much as 1.3% earlier in the session.

New York-traded West Texas Intermediate crude jumped 2.37, or 4.3%, at $57.30 per barrel by 11:50 AM ET (15:50 GMT) after falling as much as 1.3% earlier in the session.

London-traded Brent crude, the benchmark for oil outside of the U.S., returned above the key $60 per barrel mark. Brent rose $2.80, or 4.8%, to $61.37, after declining as much as 1% at the session lows.

London-traded Brent crude, the benchmark for oil outside of the U.S., returned above the key $60 per barrel mark. Brent rose $2.80, or 4.8%, to $61.37, after declining as much as 1% at the session lows.

The U.S. Trade Representative on Tuesday delayed imposing a 10% import tariff on laptops, cell phones, video game consoles and some other products made in China that had been scheduled to start next month, an abrupt pullback from a hardline stance on Chinese trade.

The U.S. Trade Representative on Tuesday delayed imposing a 10% import tariff on laptops, cell phones, video game consoles and some other products made in China that had been scheduled to start next month, an abrupt pullback from a hardline stance on Chinese trade.

Tuesday’s decision came after China's Ministry of Commerce said Vice Premier Liu He conducted a phone call with U.S. trade officials.

Tuesday’s decision came after China's Ministry of Commerce said Vice Premier Liu He conducted a phone call with U.S. trade officials.

President Donald Trump said on Aug. 1 he would impose a 10% tariff on $300 billion of Chinese goods by Sept. 1 after blaming China for not following through on promises to buy more American agricultural products.

President Donald Trump said on Aug. 1 he would impose a 10% tariff on $300 billion of Chinese goods by Sept. 1 after blaming China for not following through on promises to buy more American agricultural products.

Later in the session, attention will shift to weekly oil inventory data from the American Petroleum Institute (API).

Later in the session, attention will shift to weekly oil inventory data from the American Petroleum Institute (API).

The API will provide a snapshot of what the Energy Information Administration was likely to report on Wednesday for crude, gasoline and distillate inventories for the week ended Aug. 9. Last week the EIA said crude inventories rose by 2.4 million barrels, putting an end to seven-consecutive weeks of draws.

The API will provide a snapshot of what the Energy Information Administration was likely to report on Wednesday for crude, gasoline and distillate inventories for the week ended Aug. 9. Last week the EIA said crude inventories rose by 2.4 million barrels, putting an end to seven-consecutive weeks of draws.

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