Oil prices extend gains on US-China tariff deal

Oil drilling rigs

Oil prices extended gains today, May 12, after the United States and China reached an agreement to reduce tariffs for 90 days.

Brent crude was trading up 2.5% at $65.50 a barrel, at 10:08 am Makkah time. West Texas Intermediate (WTI) crude rose 2.62% to $62.62 a barrel.

Prices were supported by the US reducing tariffs on Chinese imports to 30% from 145% for 90 days, and China's decision to reduce tariffs on US imports to 10%.

OPEC is scheduled to release its monthly report this week, a day before the International Energy Agency's report on May 15. Both reports will include updated analyses of supply and demand forecasts, inventory levels, and prices.