Brent gains as US and China extend tariff truce

The front-month ICE Brent contract has gained by $0.26/bbl on the day, to trade at $66.54/bbl at 09.00 GMT.

IMAGE: Oil pump jacks. Getty Images

Upward pressure:

US President Donald Trump has extended the tariff deadline with Beijing to 10 November, delaying the implementation of triple-digit duties on Chinese imports as US retailers gear up for the year-end holiday season.

The move has boosted optimism that the two largest oil consumers might reach a deal and avoid a near-total trade freeze.

Market analysts warn that high tariffs could dampen global economic growth, eroding oil demand and putting downward pressure on prices.

“Tariffs stay locked where they are until November, a welcome pause after August’s slugfest of reciprocal hikes,” remarked SPI Asset Management managing partner Stephen Innes.

Downward pressure:

Brent crude has felt some downward pressure as the oil market awaits details from the meeting of President Trump and his Russian counterpart Vladimir Putin.

The two leaders are scheduled to meet in Alaska on Friday to explore the possibility of reaching a peace agreement in the Ukraine conflict.

However, Ukrainian President Volodymyr Zelenskyy has yet to receive an official invitation to the summit.

“Any peace deal between Russia and Ukraine would end the risk of disruption to Russian oil that has been hovering over the market,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.

By Aparupa Mazumder

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