Oil prices climbed on Monday after economic officials from the United States and China outlined a trade-deal framework, easing concerns that escalating tariffs and export restrictions between the two largest oil consumers might weigh on global growth.
Brent crude futures rose 47 cents, or 0.71%, to $66.41 a barrel by 06:29 GMT, while U.S. West Texas Intermediate crude gained 44 cents, or 0.72%, to $61.94. Last week, both benchmarks rallied sharply — 8.9% and 7.7%, respectively — following fresh U.S. and EU sanctions on Russia.
According to Haitong Securities, sentiment has improved thanks to new sanctions on Russia and the easing of U.S.–China trade tensions, countering earlier oversupply worries that pushed oil prices lower in October.
U.S. Treasury Secretary Scott Bessent said on Sunday that U.S. and Chinese officials hashed out a “very substantial framework” for a trade deal, paving the way for President Donald Trump and President Xi Jinping to meet later this week to discuss trade cooperation.
Bessent noted the framework would avoid 100% U.S. tariffs on Chinese goods and secure a deferral of China’s rare-earth export controls.
Trump added that he remained optimistic about reaching an agreement with Beijing and expected to hold meetings both in China and the United States.
“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.”
Analyst Tony Sycamore of IG Group said the framework eased concerns that Russia might counter fresh U.S. sanctions on Rosneft and Lukoil by offering deeper discounts and using shadow fleets to attract buyers.
“However, if sanctions on Russian energy are less effective than expected, oversupply pressures could return to the market,” said Haitong Securities analyst Yang An.
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