Oil prices rose on Monday after hitting five-month lows in the previous session, as investors focused on potential talks between the presidents of the United States and China that could ease trade tensions between the world’s two largest economies and oil consumers, according to Reuters.
Brent crude futures rose 94 cents, or 1.5%, to $63.67 a barrel by 0824 GMT. U.S. West Texas Intermediate crude was at $59.81 a barrel, up 89 cents, or 1.54%. Both contracts lost around 4% on Friday to settle at their lowest since May.
“Last week’s price meltdown was largely on the back of ceasefire in Gaza and return of U.S.-China trade volatility ahead of the November 10 trade truce deadline,” DBS energy analyst Suvro Sarkar said.
The selloff in markets now looks to be capped by both parties’ willingness to negotiate, he said, adding the near-term outlook hinged on the eventual outcome of the trade talks.
Trade tensions flared up last week after China expanded its rare earth export controls.
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In response, U.S. President Donald Trump, on Friday said he would impose 100% tariffs on China’s U.S.-bound exports.
An expected meeting between Trump and Chinese President Xi Jinping later this month was in doubt after Trump said on Friday there was no reason to meet his counterpart.
U.S. Trade Representative Jamison Greer said on Sunday that meeting could still happen in South Korea on the sidelines of the Asia-Pacific Economic Cooperation forum.
Oil prices tumbled in March and April at the height of trade tensions between the two countries.
On the demand side, China’s crude imports in September rose 3.9% from a year earlier to 11.5 million barrels per day, customs data showed.
In the Middle East, Palestinian militant group Hamas released the first seven surviving Israeli hostages, the initial phase of a ceasefire agreement that Trump helped to broker aimed at ending the conflict in Gaza.
