Oil prices rose in early trading on Monday after economic officials from the United States and China outlined a framework for a potential trade deal, easing fears that tensions between the world’s two largest oil consumers could hamper global growth.
Brent crude futures gained 46 cents, or 0.7%, to $66.40 a barrel by 0027 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose 46 cents, or 0.75%, to $61.96. Both benchmarks had surged last week by 8.9% and 7.7%, respectively ,following new U.S. and European Union sanctions on Russia.
Haitong Securities noted that market sentiment had improved due to the easing of U.S.-China trade tensions and fresh sanctions on Russia, countering earlier worries over crude oversupply that had pressured prices earlier in October.
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U.S. Treasury Secretary Scott Bessent said on Sunday that top American and Chinese officials had established a “very substantial framework” for a trade agreement during talks in Kuala Lumpur. The framework, he said, would avert the imposition of 100% U.S. tariffs on Chinese goods and suspend China’s planned export controls on rare earth minerals.
Former U.S. President Donald Trump also expressed optimism about reaching an agreement with Beijing, saying he expected meetings to take place in both China and the United States in the coming days.
“I think we’re going to have a deal with China,” Trump said. “We’re going to meet them later in China and we’re going to meet them in the U.S., either Washington or Mar-a-Lago.”
Analysts said the trade progress provided relief to oil markets rattled by concerns that Russia might counter new sanctions targeting Rosneft and Lukoil by offering steep discounts and deploying shadow fleets to attract buyers.
