Oil prices rose on Monday after US and Chinese economic officials outlined a framework for a trade deal, easing fears that tariffs and export restrictions between the world's two largest oil consumers could slow global economic growth, UNN reports with reference to Reuters.
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Brent crude futures rose 47 cents, or 0.71%, to $66.41 a barrel at 06:29 GMT (08:29 Kyiv time). US West Texas Intermediate crude futures rose 44 cents, or 0.72%, to $61.94 after rising 8.9% and 7.7% respectively last week due to US and EU sanctions on Russia.
Haitong Securities said in a client note that market expectations have improved following the imposition of new sanctions against Russia and the easing of tensions between the US and China, offsetting fears of an oil supply glut that led to lower prices in early October.
US Treasury Secretary Scott Bessent said on Sunday that US and Chinese officials had discussed a "very substantial framework" for a trade deal that would allow President Donald Trump and Chinese President Xi Jinping to discuss trade cooperation this week.
Bessent said the agreement would avoid 100% US tariffs on Chinese goods and provide a deferral of Chinese export controls on rare earth metals.
Trump also said on Sunday that he was optimistic about reaching a deal with Beijing and expected to hold meetings in China and the US.
"I think we're going to make a deal with China," Trump said. "We'll meet with them later in China, and then in the US, either in Washington or Mar-a-Lago."
According to IG Market analyst Tony Sycamore, the structure of the trade deal helps allay fears that Russia could offset new US sanctions targeting Rosneft and Lukoil by offering larger discounts and using a "shadow fleet" to attract buyers.
"However, if sanctions against Russian energy prove less effective than expected, the market could again face an oversupply," said Haitong Securities analyst Yang An.