Oil prices rose for the second day in a row on Monday, boosted by a resurgence in Chinese crude imports and the US’s temporary tariff exemptions. However, fears over the trade war’s influence on long-term global demand continued to limit upward momentum.
Brent crude gained 12 cents to settle at $64.88 a barrel.
US West Texas Intermediate (WTI) rose 3 cents to $61.53 per barrel.
The minor improvements followed the United States’ decision to exempt Chinese cellphones, computers, and certain gadgets from retaliatory tariffs (125%) imposed on April 9. Other nations received similar exemptions under the 10% baseline tax that went into effect on April 5.
Fundamental support also came from China’s March crude imports, which increased roughly 5% year on year as purchasers increased their purchases of Russian and Iranian crude. The urgency to build Iranian inventories grew as the possibility of tighter US restrictions loomed.
However, persisting trade concerns continued to cloud demand forecasts. emphasizing this strain, the United States planned to impose fresh duties on semiconductor imports the next week, emphasizing the uncertain way ahead for global economies and fuel demand.