DTN Oil Update
Oil Prices Jump on US-China Tariff Reduction
VIENNA (DTN) -- Oil futures rallied Monday morning after the U.S. and China agreed to temporarily slash tariffs on mutual goods trade. Over the next 90 days, the U.S. will tax imports from China by 30%, and China will tariff imports from the U.S. by 10%.
NYMEX-traded WTI for June delivery was up $2.09 barrel (bbl) to trade near $63.11 bbl, and ICE Brent for July delivery rose $2.08 bbl to $65.98 bbl.
June RBOB gasoline futures gained $0.0536 to $2.1620 gallon, while the front-month ULSD futures contract was up $0.0655 to $2.1319 gallon.
The U.S. dollar index strengthened by 1.217 points to 101.385.
The 90-day pause to the trade-prohibitive reciprocal 115% in additional tariffs was negotiated over the weekend in Switzerland. This followed reports of a near-total drought in Chinese container ships bound for the U.S.
Oil prices have suffered from the escalating trade war, dropping more than 20% in early April. Despite today's jump, crude oil futures are still priced some 12% lower than at the
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