SINGAPORE: Oil prices rose on Monday as markets reacted to news that China and the United States have put a looming trade war between the world’s two biggest economies “on hold”.
Brent crude futures were at $79.06 per barrel at 06:50 GMT, up 55 cents, or 0.7 per cent, from their last close. Brent broke through $80 for the first time since November 2014 last week.
US West Texas Intermediate (WTI) crude futures were at $71.71 a barrel, up 43 cents, or 0.6 per cent, from their last settlement.
The US trade war with China is “on hold” after the world’s largest economies agreed to drop their tariff threats while they work on a wider trade agreement, US Treasury Secretary Steven Mnuchin said on Sunday, giving global markets a lift in early trading on Monday.
“The temporary trade dispute will de-escalate over time through negotiation,” US bank Morgan Stanley said. “Both sides plan to work on implementing agriculture and energy purchases and to continue to negotiate on manufacturing and service trade, bilateral investment and intellectual property protection in coming months,” it added.
Still, crude prices were some way off the November 2014 highs reached last week as many traders and analysts say there is enough supply to meet demand despite ongoing production cuts led by the Organization of the Petroleum Exporting Countries, plunging output in Venezuela and looming US sanctions against major oil producer Iran. — Reuters
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