Oil prices rallied sharply on Monday morning following a breakthrough in U.S.-China trade talks, alleviating fears of escalating trade tensions and boosting hopes for global economic growth.
As of 10:00 CST, West Texas Intermediate (WTI) Crude climbed 3.24% to $63.00 per barrel, while Brent Crude, the global benchmark, rose 3.02% to $65.84 per barrel. The surge came after the White House announced that both nations agreed to slash tariffs by 15%, maintaining a 10% baseline rate for 90 days, as part of a temporary truce to foster further negotiations.
The agreement, reached during weekend talks in Geneva, signals a potential de-escalation in the trade war that has rattled markets and clouded the outlook for oil demand. “This tariff reduction is a positive step for pro-cyclical assets like oil, as it eases concerns about a demand slowdown,” said Maria Cortez, senior energy analyst at Global Markets Insights.
However, she cautioned that the market’s enthusiasm could wane if broader U.S. policies toward China remain unchanged.
