FX.co ★ Oil Holds Advance After US Tariff Pause

On Thursday, WTI crude oil futures hovered around $62.50 per barrel, maintaining a robust rebound of over 4% from the previous day's trading. This positive shift in risk sentiment was largely attributed to the United States' recent decision to delay the implementation of higher tariffs for most nations. On Wednesday, President Trump announced a reduction in import duties to 10% for a 90-day period, a measure aimed at facilitating ongoing trade discussions and alleviating fears of a full-blown trade war that could potentially lead to a global recession and diminish oil demand. Nonetheless, caution prevails as China was notably excluded from this tariff suspension, with its tariff rate sharply increasing to 125% with immediate effect. Adding further complexity to the market dynamics, OPEC+ recently concurred on a production increase set for May, which may contribute additional supply to an already saturated market. In parallel, the latest Energy Information Administration (EIA) report indicated a larger-than-anticipated decrease in gasoline and distillate inventories, partially balancing out a slight uptick in crude oil stockpiles.