Oil Prices Rise as US and China Reach Trade-Deal Framework
Oil prices climbed on Monday after U.S. and Chinese officials outlined a trade-deal framework, easing investor fears that escalating tariffs and export curbs between the world’s top two oil consumers could weigh on global economic growth.
Crude Futures Extend Weekly Gains
Brent crude futures rose 47 cents, or 0.71%, to $66.41 a barrel by 06:29 GMT, while U.S. West Texas Intermediate (WTI) futures gained 44 cents, or 0.72%, to $61.94. Both benchmarks extended their strong rallies from last week, when Brent and WTI jumped 8.9% and 7.7%, respectively, supported by U.S. and EU sanctions on Russia.
Analysts at Haitong Securities said market sentiment improved after the combination of new sanctions on Russia and progress in U.S.-China trade talks, which offset earlier concerns about a crude oversupply that had pressured prices in early October.
US-China Framework Boosts Market Confidence
U.S. Treasury Secretary Scott Bessent confirmed that both sides had agreed on a “very substantial framework” for a trade deal that will allow President Donald Trump and President Xi Jinping to discuss trade cooperation later this week.
Bessent said the agreement includes avoiding 100% tariffs on Chinese goods and delaying China’s rare-earth export controls—two measures that had previously unsettled markets.
President Donald Trump expressed optimism about reaching a final agreement with Beijing, noting that discussions will continue both in China and in the United States.
“I think we’re going to have a deal with China,” Trump said. “We’ll meet them later in China and then again in the U.S., either in Washington or at Mar-a-Lago.”
Analysts Caution on Russian Supply Risk
Market strategist Tony Sycamore from IG noted that easing U.S.-China tensions reduces concerns that Russia might counter new sanctions targeting Rosneft and Lukoil by offering discounted oil through “shadow fleets.”
However, Haitong Securities analyst Yang An warned that if sanctions on Russian energy prove less effective than anticipated, oversupply pressures could quickly return to the market, limiting the current rally.
