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Brent surges more than 3 percent as China calms trade war jitters

Reuters  |  NEW YORK 

By Ayenat Mersie

NEW YORK (Reuters) - prices rose more than $2, or over 3 percent, on Tuesday as investors grew more confident that a brewing trade dispute between the and may be resolved without harming the global

futures were up $2.32, or 3.4 percent, at $70.97 a by 2:10 p.m. EST (1810 GMT). It was Brent's largest single-day percentage jump since November.

Intermediate crude futures gained 3.3 percent, or $2.07, to $65.49 a

"This has been another huge day," said Bill Baruch, of in "There's soothing trade war fears, geopolitics, and a weaker dollar at play," Baruch said.

on Tuesday promised to open China's further and lower import tariffs, striking a conciliatory tone on the trade tensions between his country and the

Both crude benchmarks have risen more than 5 percent in the past two trading days.

Concerns over a possible trade war between the two largest economies contributed to declines of more than 4 percent in prices of both benchmarks last week.

tensions also supported prices on Tuesday, said Phillip Streible, at in

"markets are getting a bounce on increasing speculation about Trump and Syria," Streible said.

U.S. promised a swift response to a in Such a response is likely to increase the push for the to exit the nuclear deal, Streible said, given Iran's support of the

Departures from the accord would result in renewed sanctions against Iran, which would hurt its industry.

The U.S. dollar fell against a basket of major currencies <.DXY>, hitting its lowest in nearly two weeks. Because is dollar-priced, a stronger greenback makes purchases in other currencies more expensive.

The said it expected domestic production to rise by 750,000 barrels per day (bpd) to 11.44 million bpd next year, more than previously expected.

The American Institute will publish its storage data later in the day, and data is due on Wednesday. Analysts anticipated a small build in U.S. crude stocks and a reduction in products inventories.

Meanwhile, said it would keep exports below 7 million bpd and restore its inventories to normal levels.

(Additional reporting by in LONDON and Henning Gloystein in SINGAPORE; Editing by and Will Dunham)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, April 11 2018. 00:07 IST