Crude oil prices retreated Friday from highs set during the previous day's session, as the U.S. and China, which agreed to a reciprocal roll back of tariffs, engendered global market optimism but investor uncertainty prevails with the lack of details on when the deal could be sealed and what it will cover.
International benchmark Brent crude was trading at $61.83 per barrel at 0710 GMT on Friday for a 0.77% loss after closing Thursday at $62.31 a barrel.
American benchmark West Texas Intermediate (WTI) was at $56.64 a barrel at the same time for a 0.58% loss after ending the previous session at $56.97 per barrel.
While Brent crude gained 0.92% on Friday, WTI rose by 1.1%.
The U.S. and China, the world's two largest economies and oil consumers, agreed to roll back tariffs simultaneously and proportionally prior to signing phase one of their bilateral trade deal, Chinese Commerce Ministry Spokesperson Gao Feng said Thursday.
However, the amount and extent of the tariffs to be rolled back would depend on the content of the phase-one deal, he said.
Lack of details from both countries creates uncertainties for investors who still see risks that the U.S.-China trade talks could collapse if the sides fail to agree on details, especially on key topics such as technology transfer and intellectual property rights.
The U.S. has imposed tariffs on $550 billion worth of Chinese imports over the last 19 months, and China has reciprocated by implementing tariffs on $185 billion worth of imports from the U.S.
Last month, U.S. President Donald Trump delayed increasing the rate of tariffs on $250 billion worth of Chinese imports until Oct. 15, while China has provided certain exemptions from soy, pork and some agricultural goods that it imports from the U.S.
By Ovunc Kutlu