Oil Rebounds 1% on US-China Hopes
Oil prices climbed on Monday after heavy losses last week. Investors regained confidence as signs of possible US-China talks emerged.
Brent crude gained 87 cents, or 1.39%, to reach $63.60 a barrel by 0045 GMT. It had dropped 3.82% on Friday, marking its lowest level since early May.
US West Texas Intermediate (WTI) crude rose 87 cents, or 1.48%, to $59.77 a barrel after a 4.24% loss in the previous session.
Both benchmarks showed strength as traders watched for progress in trade diplomacy between the two biggest economies.
Talks May Cool Tensions
China recently expanded its rare earth export controls. The US responded with 100% tariffs and new restrictions on critical software, effective November 1.
However, there is hope. Presidents Donald Trump and Xi Jinping may meet during the Asia-Pacific Economic Cooperation (APEC) forum in South Korea later this month. Analysts say the talks could calm markets and reduce uncertainty.
Goldman Sachs analysts noted that the main question is whether the new tariffs will happen or serve as negotiation tools. They expect both nations to pause escalation and extend their tariff freeze from May.
Still, risks remain. Failed talks could reignite tensions, leading to new tariffs or export bans that hit global supply chains and oil demand.
Other Global Factors
In the Middle East, President Trump announced the Gaza war had ended. He plans to visit Israel soon to monitor the release of hostages and prisoners under a fragile ceasefire.
These developments added mixed signals for oil markets. Yet traders remain hopeful that diplomacy, not conflict, will guide global trade and energy stability.
