Oil prices retreated in Asian trading on Thursday as market sentiment was dampened by a flare-up in U.S.-China trade tensions. This comes despite President Donald Trump's temporary tariff pause for several other trading partners.
Brent Crude Futures:
↓ 39 cents, or 0.6%, to $65.09 per barrel
West Texas Intermediate (WTI) Crude Futures:
↓ 29 cents, or 0.5%, to $62.06 per barrel
On Wednesday, both contracts had jumped nearly 4% following the tariff pause announcement, after dropping as much as 7% earlier in the session.
President Trump announced a 90-day pause on reciprocal tariffs for most countries
Simultaneously, he raised tariffs on Chinese goods to 125%, up from 104%
China responded by imposing an 84% import levy on U.S. products
According to ING’s commodities team:
“This uncertainty is still likely to drag on global growth, which is clearly a concern for oil demand.”
They also noted:
“The ICE Brent forward curve is signaling a better-supplied oil market,”
highlighting a shift into contango from the January 2026 contract onward — an indicator of potential oversupply.
Yeap Jun Rong, strategist at IG, noted that the short-term optimism may fade:
“We may expect oil prices to resume their broader downward trend.”
“Demand-side headwinds persist, with China’s growth outlook at risk from the ongoing tit-for-tat.”
For up-to-date oil prices and historical performance metrics, traders and analysts can utilize the
\ud83d\udee2 Commodities API by Financial Modeling Prep. It provides real-time data on Brent, WTI, and other energy commodities.
Let me know if you'd like a follow-up blog on how oil futures are reacting across different contract months or how OPEC+ might respond to weakening demand trends.
