Oil gains as US-China tariff pause extension boosts trade hopes
Brent crude futures gained 26 cents, or 0.39%, to $66.89 a barrel by 0015 GMT, while U.S. West Texas Intermediate crude futures rose 22 cents, or 0.34%, to $64.18.
U.S. President Donald Trump extended a tariff truce with China by another 90 days, a White House official said on Monday, staving off triple-digit duties on Chinese goods as U.S. retailers prepared for the critical end-of-year holiday season.
This raised hopes that an agreement could be attained between the world's two largest economies, and could help sidestep a virtual trade embargo between them. Tariffs risk slowing down economic growth, which could sap global fuel demand and drag oil prices lower.
Investors are also looking ahead to a meeting between Trump and Russian President Vladimir Putin on August 15 in Alaska to negotiate an end to the war in Ukraine.
The meeting is set amid heightened U.S. pressure on Russia, with the threat of harsher penalties on Russian oil buyers such as China and India if no peace deal is reached that could upset oil trade flows.
"Any peace deal between Russia and Ukraine would end the risk of disruption to Russian oil that has been hovering over the market," ANZ senior commodity strategist Daniel Hynes wrote in a note.
Trump set a deadline of last Friday for Russia to agree to peace in Ukraine or have its oil buyers face secondary sanctions, while pressing India to reduce purchases of Russian oil.
Washington has also been pressing Beijing to stop buying Russian oil, with Trump threatening to impose secondary tariffs on China.
The risk of those sanctions being enacted has receded ahead of the August 15 Trump-Putin meeting.
Also on the radar is U.S. inflation data later in the day, that could hint at the Federal Reserve's interest rate path. Any sign that the central bank may cut rates soon would support crude prices.
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Khaleej Times
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- Khaleej Times
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The price momentum is also attracting longer-term investors, with some rebalancing portfolios away from physical assets vulnerable to political interference. 'If gold—once untouchable—is now vulnerable to regulatory shifts, digital alternatives are not just attractive, they're increasingly inevitable,' said Green. 'Trump's tariffs have helped rewrite the hierarchy of store-of-value assets.' Market strategists warn that the coming weeks could be pivotal. Bitcoin's ability to decisively clear the $123,000 threshold may set the tone for its next growth phase. Crypto analyst Altcoin Sherpa outlined two likely short-term scenarios: a gradual pullback to form a stronger base, or a sharp liquidity test near $120,000 influenced by Treasury movements and broader economic indicators. All eyes are now on mid-August US inflation data, with consumer and producer price reports expected to shape the Federal Reserve's September rate decision. 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The National
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Khaleej Times
2 hours ago
- Khaleej Times
'Game changer': New rupee rule to deepen trade ties with India, says senior UAE official
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