Oil climbs by about 5% while the United States delays billing of some Chinese products

(Reuters) – Oil prices on Tuesday posted their biggest rise one day this year after the announcement by the United States to delay the introduction of new tariffs on some Chinese products. thus relieving worries over the global trade war that has sharply reduced the market in recent months. .

Chinese products to be delayed by 10 percent from September 1 include laptops and mobile phones.

Futures contracts on Brent rose $ 2.73, or 4.7%, to $ 61.30 per barrel.

United States West Texas Intermediate (WTI) crude oil futures were up $ 2.17, or 4.0%, to settle at $ 57.10 per barrel.

This is the largest percentage increase on a Brent day since December, when it jumped 7.9%.

Since falling to its lowest level since August 7, Brent rose 9% and US crude 12%. The largest increase in crude oil prices in the United States over the past four days has pushed Brent West to mid-Texas to briefly return to its lowest level since March 2018.

Prior to the US announcement of rate deferral, Brent's contracts were still trading, down about 20% from the highest level reached in 2019 in April.

Analysts said oil prices were also supported by forecasts of lower US crude inventories last week and a belief that Saudi Arabia would abide by the cuts in production.

Saudi Arabia, OPEC's largest oil producer, announced last week its intention to keep its crude oil exports below 7 million bpd in August and September, in order to help boost oil exports. Depletion of global oil stocks.

The kingdom's plan to launch its national oil company, Saudi Aramco, into what could be the world's largest public call for savings (IPO), could give the kingdom a new boost to boost prices.

"With information that Saudi Aramco is considering an IPO," says JBC Energy, a Vienna-based energy consulting firm, Saudi Arabia is very interested in the sharp rise in oil prices and consequently in its production. . "