SINGAPORE — Oil prices retreated on Wednesday as traders eyed a potential jump in US crude inventories, though prices held near two-week highs amid optimism after the United States and China agreed to temporarily lower their reciprocal tariffs.
Brent crude futures fell 39 cents, or 0.6 percent, to $66.24 a barrel. US West Texas Intermediate (WTI) crude slipped 36 cents, or 0.6 percent, to $63.31. Both benchmarks had climbed more than 2.5 percent in the previous session.
The two largest economies agreed on Monday to pause their trade war for at least 90 days, with the United States cutting tariffs to 30 percent from 145 percent and China slashing duties on US imports to 10 percent from 125 percent.
“The US-China economic pause might have crafted a narrative that could invigorate demand amidst a backdrop of cautious optimism,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
However, expectations of a staggering jump in US oil inventories capped optimism for now, Sachdeva added.
