Crude prices advanced on Monday after U.S. and Chinese economic officials agreed on a trade-deal framework, easing fears that tariff battles and export controls between the world’s top two oil consumers could slow global economic growth.
Brent crude futures gained 47 cents, or 0.71%, to $66.41 a barrel by 06:29 GMT, while U.S. West Texas Intermediate crude futures rose 44 cents, or 0.72%, to $61.94. Both contracts surged last week — up 8.9% and 7.7%, respectively — as sanctions from the U.S. and EU on Russia tightened supply expectations.
Haitong Securities said in a client note that optimism has grown on the back of the new sanctions and signs of easing U.S.–China trade tensions. This, the firm added, has helped counterbalance lingering concerns about oversupply that had previously pressured prices in early October.
U.S. Treasury Secretary Scott Bessent said on Sunday that officials from Washington and Beijing reached a “very substantial framework” for a trade agreement, setting the stage for President Donald Trump and President Xi Jinping to discuss deeper trade cooperation this week.
Bessent explained that the framework would avoid 100% U.S. tariffs on Chinese goods and include a deferral of China’s rare-earth export restrictions.
Trump also expressed confidence in the negotiations, saying he expects to hold meetings in both 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.”
According to Tony Sycamore, market analyst at IG Group, the announcement helped ease worries that Russia might respond to fresh U.S. sanctions on Rosneft and Lukoil by offering aggressive discounts and using shadow fleets to maintain sales.
“However, if sanctions on Russian energy are less effective than expected, oversupply pressures could return to the market,” said Haitong Securities analyst Yang An.