Oil prices fell on Thursday as heightened trade tensions between the United States and China dampened market sentiment despite a temporary tariff reprieve for other countries. Brent crude slipped 39 cents, or 0.6 per cent, to $65.09 a barrel, while US West Texas Intermediate (WTI) declined 29 cents, or 0.5 per cent, to $62.06 by 0630 GMT. The pullback followed a 4 per cent rebound on Wednesday after a volatile session saw prices plunge as much as 7 per cent. Market pressure returned after US President Donald Trump raised tariffs on Chinese imports to 125 per cent, up from the previously announced 104 per cent. China retaliated with an 84 per cent tariff on US goods, fuelling concerns about demand and global economic growth. ING analysts noted that the tariff escalation casts a shadow over oil demand outlooks, warning that "uncertainty is still likely to drag on global growth." The ICE Brent forward curve shifted into contango from January 2026, signalling expectations of a better-supplied market. Supply-side factors offered limited support. The Keystone Pipeline remained shut after a spill in North Dakota, prompting a force majeure declaration. Meanwhile, the Caspian Pipeline Consortium resumed partial operations at the Black Sea following a Russian court ruling. US crude inventories rose by 2.6 million barrels last week, nearly double analysts' expectations, adding further pressure to prices. Attribution: Reuters Subediting: M. S. Salama
