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Oil prices edged higher on Tuesday, with Brent crude moving closer to the $70-mark, as fears ebbed of a possible trade dispute between the United States and China.
The international benchmark grade, Brent crude, was last trading up 1.4 percent at $69.62 per barrel (bbl), while West Texas Intermediate crude futures rose 1.4 percent to $64.29/bbl.
Crude prices had climbed more than 2 percent on Monday, after closing last week in the red.
“Appetite for risk bolstered Tuesday morning, as Chinese President Xi Jinping offered plans to further open up the second largest economy,” Hussein Sayed, chief market strategist at FXTM, said in a note.
President Xi has promised to lower import tariffs for certain products, including autos, and open up the financial and insurance sectors, Sayed said.
China on Tuesday decided to challenge the US over its steel and aluminum tariffs at the World Trade Organization, AFP reported.
Earlier, investor confidence was shaken as both the US and China announced new and higher import duties on products from the other’s country.
China had threatened to raise tariffs on $50 billion of US goods including soybeans, aircraft and automobiles in response to increased duties by the US on Chinese goods.
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