Oil trims gains but posts highest close in two weeks

Oil drilling rigs

Oil prices pared gains after a sharp rise on May 12, but recorded their highest close since April 28, after the United States and China reached an agreement to reduce tariffs on both sides for 90 days.

Brent crude futures for July delivery rose 1.65%, or $1.05, to $64.96 a barrel, after touching $66.40 earlier in the session.

WTI crude futures for June delivery rose 1.50%, or 93 cents, to $61.95 a barrel, after reaching $63.61 earlier in the session.

The US agreed to reduce tariffs on Chinese imports to 30% from 145%, and China decided to reduce tariffs on US imports to 10% from 125%, for a period of 90 days.

For its part, the Central Bank of Russia expects oil prices to stabilize at $60 per barrel in the future, amid a potential recovery in global demand as trade tensions ease.

Meanwhile, the US House of Representatives Energy and Commerce Committee has prepared a budget proposal that includes allocating more than $1.5 billion to increase the strategic oil reserve.

OPEC is scheduled to release its monthly report on May 14, a day before the International Energy Agency's report. Both reports will include updated analyses of supply and demand forecasts, inventory levels, and prices.