Oil prices rose on Monday, recovering some of last week’s sharp losses, as investors turned their attention to possible talks between the presidents of the United States and China that could help ease trade tensions between the world’s two largest economies—and biggest oil consumers.
By 08:24 GMT, Brent crude futures were up 94 cents, or 1.5%, at $63.67 a barrel, while U.S. West Texas Intermediate (WTI) crude climbed 89 cents, or 1.54%, to $59.81. Both benchmarks had fallen around 4% on Friday, settling at their lowest levels since May.
“Last week’s price meltdown was largely due to the Gaza ceasefire and renewed volatility in U.S.-China trade relations ahead of the November 10 trade truce deadline,” said Suvro Sarkar, an energy analyst at DBS. He noted that the recent selloff now appears to be capped by signs that both sides are willing to negotiate, though the near-term outlook depends on the outcome of the expected talks.
Tensions escalated last week after China expanded its export controls on rare earth materials. In response, U.S. President Donald Trump announced plans to impose 100% tariffs on Chinese exports bound for the United States.
Uncertainty remains over a possible meeting between Trump and Chinese President Xi Jinping later this month, after Trump said on Friday there was “no reason” to meet his counterpart. However, U.S. Trade Representative Jamison Greer indicated on Sunday that a meeting could still take place in South Korea on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum.
Oil prices had previously tumbled in March and April during heightened U.S.-China trade tensions.
On the demand side, China’s crude oil imports rose 3.9% year-on-year in September to 11.5 million barrels per day, according to customs data.
In the Middle East, Palestinian militant group Hamas released seven Israeli hostages—the first under a ceasefire agreement brokered with the help of President Trump—marking an initial step toward ending the conflict in Gaza.
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Source:Africa Publicity
