Oil gains as US-China tariff pause extension boosts trade hopes
1. Oil prices increased due to tariff pauses by the US and China. 2. This development may support fuel demand in major oil-consuming countries.
FAQ
Why Bullish?
Tariff pauses suggest reduced trade tensions, which historically lead to stable or rising oil prices. In previous instances of reduced trade barriers, oil demand and prices have surged.
How important is it?
The tariff adjustments between major economies directly affect oil demand and prices, influencing BNO as an oil-focused instrument, indicating a good likelihood of price changes.
Why Short Term?
The immediate impact of tariff reductions on oil prices is generally seen quickly due to market reactions; previous tariff announcements have influenced oil prices within days.