FX.co ★ Brent Crude Oil Pull Back Below $64

Brent crude oil futures experienced a decline of over 2% dropping below $64 per barrel on Thursday, following a 4.2% increase in the previous trading session. The renewed decline was primarily attributed to escalating trade tensions between the United States and China, which have reignited concerns over demand. In a significant move, President Trump raised tariffs on Chinese imports to 125%, barely a day after imposing a 104% hike. Although he has delayed the imposition of new tariffs on other nations for 90 days, the intensifying situation with China, the world's largest oil importer, has raised alarms regarding potentially weaker fuel demand. In response, China increased tariffs on US goods to 84% and is set to announce stimulus initiatives aimed at bolstering sectors such as housing and consumption. Simultaneously, OPEC+ reached an agreement to expedite increases in oil production, heightening fears of a potential oversupply. Further contributing to market uncertainty, the Keystone pipeline from Canada remains closed following a spill in North Dakota, with no confirmed timeline for its reopening.