Oil market jumped more than 4% as the US delayed reciprocal tariff
Oil prices surged on Wednesday, recovering sharply from earlier losses after the US government unexpectedly postponed the implementation of the reciprocal tariffs by 90 days.
Oil prices surged on Wednesday, recovering sharply from earlier losses after the US government unexpectedly postponed the implementation of the reciprocal tariffs by 90 days. The shift eased immediate recessionary fears, though market sentiment remained cautious amid ongoing geopolitical strains.
Brent crude rose $2.66, or 4.23%, to settle at $65.48 a barrel.
US West Texas Intermediate (WTI) climbed $2.77, or 4.65%, to $62.35 a barrel.
The policy reversal saw planned reciprocal tariffs lifted for all countries except China, with only a universal 10% rate left in place. The move marked a partial retreat from the measures that had earlier triggered global slowdown concerns and sent crude benchmarks to four-year lows.
Still, investor sentiment remained restrained as US trade tensions with China escalated. Washington raised tariffs on Chinese goods from 104% to 125%, while Beijing remained on track to enforce an 84% levy on US imports, effective Thursday.
Further gains were capped after official data showed US crude inventories rose by 2.6 million barrels last week—well above market expectations—highlighting supply-side pressure.
Written by: Derek Yong