Oil Prices Rebound as Investors Eye Potential US-China Talks
Oil prices climbed on Monday, recovering from five-month lows in the previous session. Investors grew optimistic that possible discussions between U.S. President Donald Trump and Chinese President Xi Jinping could help ease trade tensions between the world’s two largest economies — and biggest oil consumers.
Crude Prices Recover After Sharp Declines
Brent crude futures rose 92 cents, or 1.47%, to $63.65 a barrel by 06:22 GMT, after falling 3.82% on Friday, marking their lowest level since May 7.
Meanwhile, U.S. West Texas Intermediate (WTI) crude gained 89 cents, or 1.51%, to $59.79 a barrel, after plunging 4.24% on Friday to a similar five-month low. WTI settlements will resume on Tuesday, as Monday is a public holiday in parts of the United States.
Analysts See Hopes in Renewed Trade Diplomacy
“Last week’s price meltdown was mainly due to the Gaza ceasefire and renewed U.S.-China trade volatility ahead of the November 10 trade truce deadline,” said Suvro Sarkar, energy analyst at DBS Bank.
He added that the selloff now appears limited, supported by signs that both sides are open to further negotiations. The short-term outlook, he noted, depends on the outcome of these trade discussions.
Trade Tensions Remain but Optimism Grows
Trade relations between Washington and Beijing flared last week after China tightened export controls on rare earths. In response, Trump announced plans to impose 100% tariffs on Chinese exports to the U.S. and introduce new software export restrictions starting November 1.
However, Trump later softened his tone, posting on Truth Social: “Don’t worry about China, it will all be fine!”
The remarks came ahead of a potential meeting between Trump and Xi on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea later this month. U.S. Trade Representative Jamison Greer confirmed the meeting was still possible.
Goldman Sachs: Talks Could Pause Tariff Escalation
Analysts at Goldman Sachs said the most probable scenario is that both nations step back from aggressive measures, possibly agreeing to extend the tariff truce indefinitely. Still, they cautioned that the risk of renewed escalation remains, which could temporarily trigger higher tariffs or tougher export rules.
Oil prices have historically dropped during heightened U.S.-China trade disputes, particularly in March and April, when tensions last peaked.
Strong China Oil Demand, Gaza Ceasefire Progress
China’s crude oil imports climbed 3.9% year-on-year in September to 11.5 million barrels per day, according to customs data, as refiners boosted output and continued stockpiling.
Meanwhile, in the Middle East, Hamas released seven Israeli hostages on Monday, marking the first phase of a ceasefire agreement reportedly brokered by President Trump to help end the conflict in Gaza.
