Oil market reversed gains as US-China trade tensions eclipse wider tariff pause
The oil market erased most gains from the previous session, settling more than $2 per barrel lower on Thursday, as escalating trade tensions with China

The oil market erased most gains from the previous session, settling more than $2 per barrel lower on Thursday, as escalating trade tensions with China overshadowed the US government's temporary pause on reciprocal tariffs applied to other trading partners.
Brent crude dropped $2.15, or 3.3%, to $63.33 per barrel.
WTI crude fell $2.28, or 3.7%, to close at $60.07 per barrel.
Both benchmarks had rallied more than $2 on Wednesday following the unexpected tariff suspension. However, momentum faded as investors digested the US government’s simultaneous hike in duties on Chinese goods—with cumulative tariffs reaching 145% since the start of the year, according to an official update on Thursday.
Adding to sentimental burdens, US commercial crude inventories rose by 2.6 million barrels in the previous week—nearly twice the expected increase—amid a widening net import gap. The weakness in exports continued a trend that began in March, when outbound volumes reportedly averaged just 112,000 barrels per day, down sharply from 190,000 bpd a year earlier.
Written by: Derek Yong