Oil retreats as US-China trade war escalates

Oil prices retreated by more than 3 per cent on Thursday as fears of a deepening US-China trade war and a possible recession eclipsed earlier relief created by President Donald Trump's announcement of a 90-day pause on some tariffs against most countries, reports Reuters.

Brent futures fell $2.27, or 3.5 per cent, to $63.21 a barrel by 1317 GMT. US West Texas Intermediate crude futures dropped $2.26, or 3.6 per cent, to $60.09.

The retreat followed a volatile session on Wednesday, when crude benchmarks, which had tumbled as much as 7 per cent earlier in the day, ended around 4 per cent higher following Trump's announcement of a pause on reciprocal tariffs on most countries.

However, the reprieve excluded China. Trump increased tariffs on Chinese imports to 125 per cent from 104 per cent, deepening a trade standoff with the world's second-largest economy and a leading consumer of crude.