Oil prices are rocketing higher once again amidst easing tensions between the US and China. Having fallen as far as $50/bbl last week, today crude oil is trading at $57.09, up $2.16 (3.9%) from yesterday’s close.
Fuel prices are also putting up some big gains. Diesel prices are currently trading at $1.8678, up 6.2 cents (3.4%) from Monday’s closing price. Gasoline prices are currently $1.7354, up a hefty 7 cents (4.2%).
Despite a weak opening sentiment today, prices are moving much higher heading into the afternoon session. The US Trade Representative commented that the US would delay imposing the previously announced 10% tariffs for certain items. The US has already slapped 25% tariffs on half of the goods from China, so the latest threat was expected to hit the other half. This isn’t the first time Trump has delayed tariff hikes; last December the US delayed increasing tariffs from 10% to 25%, only to up the rate in May.
The delay, done in the name of healthy, safety and national security, applies to an array of consumer goods including electronics and certain clothing and pushes the deadline to Dec 15 – notably after elections and the holiday shopping rush to ship goods east. Still, many goods will still be hit with 10% tariffs on Sept 1, contributing to the slowdown in trade between the two countries.