Crude oil futures traded higher on Tuesday morning after US President Donald Trump extended the suspension of tariffs on China by another three months.

At 9.58 am on Tuesday, October Brent oil futures were at $66.87, up by 0.36 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $64.16, up by 0.31 per cent. August crude oil futures were trading at ₹5,633 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹5612, up by 0.37 per cent, and September futures were trading at ₹5,576 against the previous close of ₹5,552; up by 0.43 per cent.

In a post on the social media platform Truth Social, Trump said: “I have just signed an Executive Order that will extend the Tariff Suspension on China for another 90 days. All other elements of the Agreement will remain the same.”

Following this, China also extended tariff extension by another 90 days. Chinese media reports said that China’s commerce ministry has continued to suspend or remove export-control measures on some US entities from Tuesday, in line with the consensus reached during the high-level China-US economic and trade meeting in Stockholm.

A Global Times report said that to implement the consensus reached at the China-US high-level economic and trade talks, effective August 12, 2025, measures targeting 16 US entities listed on April 4 will remain suspended for 90 days, while measures against 12 US entities listed on April 9 will be terminated.

These developments alleviated the fears of an escalation in trade war between the US and China. An escalation in trade war would have impacted the economies of the both the countries and would have affected the demand for commodities such as crude oil. Both US and China are the major consumers of crude oil in the global market.

August mentha oil futures were trading at ₹1,039.90 on MCX during the initial hour of trading on Tuesday against the previous close of ₹1020.30, up by 1.92 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), August jeera contracts were trading at ₹19,035 in the initial hour of trading on Tuesday against the previous close of ₹18,935; up by 0.53 per cent.

August guargum futures were trading at ₹9,620 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹9,672; down by 0.54 per cent.

Published on August 12, 2025