The price of oil increases by 4.7% as trade tensions abate

Oil prices jumped 4.7% in trading yesterday after the US announced that it would delay tariffs by 10% on some Chinese products, easing concerns over oil prices. global trade war that has sharply reduced the market in recent months. Chinese products are laptops and cell phones. The new rates will come into effect next month and during trading, Brent crude futures increased by $ 2.21, or 3.81%, to $ 61.32 per barrel.

US crude futures increased $ 2.03 or 3.7% to $ 56.96 per barrel.

Before yesterday's gains, Brent was down more than 20% since its peak in 2019 in April.

Earlier in the day, the Brent premium on US crude fell to its lowest level since March 2018.

The Brent premium on US crude fell to its lowest level since March 2018.

Saudi Arabia, the largest oil producer of the Organization of the Petroleum Exporting Countries (OPEC), announced last week its intention to keep its crude oil exports below 7 million barrels a day in August and September to help divest world 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 Saudi Arabia a boost to revive the prices.

"With information that Saudi Aramco is considering an IPO again, the idea that Saudi Arabia is very interested in high oil prices and consequently by the reduction in production is benefiting." Support, "said consulting firm JBC Energy, based in Vienna.

OPEC and its allies, the group known as OPEC +, have agreed to cut oil production by 1.2 million barrels a day since Jan. 1.

The growing trade war between the United States and China, the world's two largest economies and energy consumers, has put strong pressure on oil prices in recent months.

A significant increase in shale oil production in the United States continues to hinder efforts to reduce the glut of global supply and negatively impact prices.