Oil retreats after sharp rally as US-China trade war escalates

Oil prices retreated 2% on Thursday as fears of a deepening U.S.-China trade war and a possible recession eclipsed earlier relief created by President Donald Trump’s announcement of a 90-day pause on some tariffs against most countries. Reuters reported.

Brent futures fell $1.55, or 2.37%, to $63.93 a barrel by 1027 GMT. While U.S. West Texas Intermediate crude futures dropped $1.51, or 2.42%, to $60.84.

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The retreat followed a volatile session on Wednesday, when crude benchmarks, which had tumbled as much as 7% earlier in the day, ended around 4% higher following Trump’s announcement of a pause on reciprocal tariffs on most countries, though he maintained a baseline tariff rate of 10%.