Crude oil climbs more than $1 on tariff cuts, outlook

Crude oil futures climbed more than $1 a barrel on Tuesday, lifted by a temporary cut in U.S.-China tariffs and a better than expected inflation report.

Brent crude futures rose $1.11, or 1.71%, to $66.07 a barrel by 1443 GMT. U.S. West Texas Intermediate (WTI) crude was up 95 cents, or 1.53%, at $62.90.

The two benchmarks rose by about 4% or more in the previous session after the U.S. and China agreed on sharp reductions to tariffs for at least 90 days, which also boosted Wall Street stocks and the dollar.

"We didn't participate as much as other markets did yesterday in the China boom, so we're catching up today," said John Kilduff, partner with Again Capital LLC. “Also the data this morning gives the Fed room to potentially begin making some moves.”

A U.S. Labor Department report on Tuesday said inflation in April was 2.3%, the smallest year-over-year gain in four years, opens new tab, leading Wall Street firms like JP Morgan Chase and Barclays to cut forecasts of a U.S. recession in the coming months.