Oil prices rose in early Asian trading on Monday after U.S. and Chinese officials outlined a trade-deal framework, easing global economic concerns and boosting investor sentiment. The agreement between the world’s top two oil consumers is seen as a step toward reducing trade tensions that have weighed on global growth and energy demand.
Brent crude futures gained 46 cents, or 0.7%, to $66.40 a barrel, while U.S. West Texas Intermediate (WTI) crude climbed 46 cents, or 0.75%, to $61.96 by 0027 GMT. The gains follow a strong week in which Brent surged 8.9% and WTI rose 7.7%, fueled by new U.S. and EU sanctions on Russia’s energy sector.
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According to Haitong Securities, market sentiment has improved as easing U.S.–China tensions and sanctions on Russia counterbalance earlier fears of crude oversupply. U.S. Treasury Secretary Scott Bessent said that both sides had reached a “very substantial framework” for a trade deal during talks in Kuala Lumpur, which will pave the way for meetings between President Donald Trump and President Xi Jinping later this week.
Bessent confirmed the framework includes the avoidance of 100% U.S. tariffs on Chinese goods and the deferral of China’s rare-earth export controls. Trump also expressed optimism, saying he expects to finalize a deal during meetings in China and the United States.
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Analysts, however, cautioned that potential oversupply risks remain. “If sanctions on Russian energy prove less effective than anticipated, downward pressure on prices could return,” said Yang An of Haitong Securities. Still, optimism over trade diplomacy and sanctions-driven tightening continues to support oil prices in the near term.