Oil prices rose on Monday after hitting five-month lows in the previous session, as investors hoped potential talks between the presidents of the U.S. and China could ease trade tensions between the world’s two largest economies and oil consumers.
Brent crude futures climbed 92 cents, or 1.47%, to $63.65 a barrel by 0408 GMT after settling down 3.82% on Friday to the lowest since May 7. U.S. West Texas Intermediate crude was at $59.79 a barrel, up 89 cents, or 1.51%, following a 4.24% loss to reach its lowest since May 7.
WTI prices will settle on Tuesday as Monday is a public holiday in the U.S. The moves come ahead of a potential Trump-Xi meeting on the sidelines of the Asia-Pacific Economic Cooperation forum in South Korea, which U.S. Trade Representative Jamison Greer said could still happen later this month.
“The most likely scenario seems to be that both sides pull back on the most aggressive policies and that talks lead to a further – and possibly indefinite – extension of the tariff escalation pause reached in May,” Goldman Sachs analysts said in a note.
