Crude Oil Prices: Global crude oil prices surged over 3% in Asian trading hours on Monday, as optimism around US-China trade relations lifted investor sentiment and bolstered expectations for stronger energy demand.
The rally followed a joint announcement from Geneva, where the United States and China agreed to a 90-day rollback of tariffs, a move interpreted by markets as a breakthrough in long-stalled trade talks between the world’s two largest economies — and the top two oil consumers globally.
Crude Oil Prices Key Price Movements
- Brent crude rose to an intraday high of $66.30 a barrel, before settling around $64.14, up 2.5%.
- West Texas Intermediate (WTI) touched $63.41, later trading 2.7% higher at $63.14.
Tariff Easing Details
- US tariffs on Chinese goods will be reduced from 145% to 30%, including tariffs linked to chemical substances like fentanyl.
- China’s retaliatory tariffs on US imports will drop from 125% to 10%.
- The revised tariff structure will take effect on May 14, giving businesses and markets room to adjust.
Market Reactions
The easing of trade tensions sparked broad-based gains across global equity and commodity markets:
- Indian markets rallied, with the Nifty Metal index up nearly 5%, driven by expectations of higher commodity demand.
- Nifty IT index soared 5.4%, with IT giants like Infosys, Wipro, and HCLTech surging up to 8% as risk-on sentiment returned.
Broader Impact
The crude rally caps a strong rebound, with both Brent and WTI marking their first weekly gains since mid-April, signaling renewed investor confidence in a recovery in global energy demand and industrial activity.
This development comes after weeks of sluggish price movements caused by macroeconomic uncertainty and geopolitical headwinds. The tariff rollback now offers markets a tangible signal of de-escalation in trade hostilities that have previously suppressed oil consumption forecasts.