Crude oil prices rebounded today, after dipping on Monday, following the news that the U.S. will delay the imposition of tariffs on China by 90 days as negotiations continue.
At the time of writing, Brent crude was trading at $66.98 per barrel, with West Texas Intermediate at $64.25 per barrel. Oil prices have shed a cumulative 10% since the start of the year, Bloomberg said in a report on Monday.
The delay of the tariffs apparently gave oil traders reason to hope that the trade spat could be resolved without too much pain for the world’s top importer of crude oil, which would have a strong impact on global demand prospects, especially with all the other tariffs that Trump has imposed on U.S. trading partners.
Meanwhile, the meeting between the presidents of Russia and the United States, scheduled for Friday, remains in the focus of attention as well. The prevailing sentiment appears to be a bearish one, with expectations of a deal to end the war in Ukraine. However, President Trump tempered expectations on Monday, saying, “I’m going in to speak to Vladimir Putin, and I’m going to be telling him, You got to end this war. You got to end it.” “It’s not up to me to make a deal. I think a deal can be made for both,” Trump added, speaking to the media.
“Any peace deal between Russia and Ukraine would end the risk of disruption to Russian oil that has been hovering over the market,” ANZ analyst Daniel Hynes said, as quoted by Reuters.
If Trump and Putin fail to agree on a peace deal, the U.S. will likely go ahead with additional sanctions, including secondary ones for countries buying Russian oil, notably India and China. Such a development would have an immediate impact on oil prices, with estimates of the jump varying between $80 and $200 per barrel.
By Irina Slav for Oilprice.com
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