WTI rises to 12-day highs above $56.50 on easing trade worries

• USTR says tariffs on some Chinese products will be delayed until December 15.
• Crude oil reacts positively on hopes of strong demand.
• Coming up: API's weekly crude oil stock report.

Crude oil prices gained traction in the last hour as the latest developments surrounding the US-China trade dispute eased concerns over a prolonged conflict and its potential negative impact on the energy demand outlook. As of writing, the barrel of West Texas Intermediate was trading at $56.80, rising 3.7% on a daily basis.

Progress in US-China trade talks

The US Trade Representative's (USTR) office today said that they have decided to delay additional 10% tariffs on a list of Chinese imports until December 15 ahead of the next round of face-to-face talks in September in Washington. According to the statement, tariff exemptions will include a variety of consumer electronics such as laptop computers, monitors and game consoles as well as footwear and clothing items.

Additionally, Chinese news agency Xinhua earlier today reported that USTR Lighthizer and US Treasury Secretary Mnuchin talked on the phone with China's Vice Premier Liu, pointing to progress toward a potential trade deal.

Later in the session, the American Petroleum Institue's weekly crude oil stock report will be looked upon for fresh impetus.

Technical levels to watch for