Oil prices rose on Monday after both sides of trade talks between the US and China claimed progress over the weekend, lifting market sentiment that the world's two largest oil consumers may be moving towards resolving their trade dispute, UNN reports citing Reuters.
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Brent crude futures rose 27 cents, or 0.4%, to $64.18 a barrel at 00:01 GMT (02:01 Kyiv time). West Texas Intermediate (WTI) crude futures traded at $61.30 a barrel, up 28 cents, or 0.5%, from Friday.
Both benchmarks rose more than $1 on Friday and rose more than 4% last week, posting their first weekly gain since mid-April after a US trade deal with the UK instilled optimism in investors that economic shocks from US tariffs on trading partners could be avoided.
The US and China concluded trade talks on a positive note on Sunday, with US officials touting a "deal" to reduce the US trade deficit, while Chinese officials said the sides had reached "important consensus."
However, neither side released any details of the talks, and Chinese Vice Premier He Lifeng said a joint statement would be released on Monday.
The US and China are close to signing a trade agreement - CNN11.05.25, 22:16 • [views_4518]
Positive talks between the world's two largest economies could help boost oil demand, as trade, now disrupted by huge tariffs from both countries, recovers between them.
"Optimism about constructive talks between the US and China supported sentiment, but limited details and OPEC's plan to increase production limited gains," said Toshitaka Tazawa, an analyst at Fujitomi Securities.
Tazawa was referring to plans by the Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, to accelerate production growth in May and June, which would increase oil supplies to the market.
However, a Reuters survey showed that OPEC oil production fell slightly in April.
In addition, talks between Iranian and American negotiators to resolve disputes over Tehran's nuclear program concluded in Oman on Sunday, with officials saying further talks were planned, as Tehran publicly insisted on continuing uranium enrichment.
A nuclear deal between the US and Iran could ease concerns about declining global oil supplies, which could also put pressure on oil prices.
Energy company Baker Hughes reported on Friday that US energy companies cut the number of oil and gas rigs in operation last week to the lowest level since January.