World News
Crude Futures Surge as US and China Cut Tariffs for 90 Days
Crude futures surged on Monday morning as the US and China announced cuts in tariffs on each other's exports for the next three months.
The US will cut its tariffs on Chinese goods to 30% from 145% previously and China will cut its levies on US goods to 10% from 125% for the next 90 days, US Treasury Secretary Scott Bessent said at a media briefing on Monday after a meeting with Chinese officials in Geneva.
A range of markets including crude futures surged following the announcement. The ICE July Brent contract traded at $65.65/bl as of 10:05 AM in London, up from $63.91/bl at Friday's close.
Escalating tariffs from the US and China on each other's exports since early April have led to considerable market tensions amid concerns that a slowdown in trade could trigger a global recession.
Container shipping activity heading from China to the US has already slowed, leading to lower bunker sales at both ends of the route, and any recovery in freight demand will be likely to lead to higher bunker volumes.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 511.00 | 6.50 | 590.50 | 2.00 |
| Rotterdam | 451.00 | 7.00 | 597.00 | 8.00 |
| Houston | 450.50 | 4.50 | 602.50 | 14.50 |
| Fujairah | 498.00 | 3.50 | 710.00 | 3.00 |
| Global 20 Ports Average | 526.00 | 6.50 | 700.50 | 6.50 |
| Global 4 Ports Average | 477.50 | 5.50 | 625.00 | 6.00 |
| Global Average Bunker Price | 564.50 | 3.50 | 747.50 | 2.00 |
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