Oil prices have risen on Monday as investors hope for expected talks between the presidents of the U.S. and China, which could ease trade tensions between the world’s two largest economies and oil consumers.
Prices rose after hitting five-month lows in the previous session.
Brent crude futures climbed 92 cents, or 1.47 per cent, to $63.65 a barrel, while U.S. West Texas Intermediate crude was at $59.79 a barrel, up 89 cents, or 1.51 per cent.
U.S.-China trade tensions intensified last week after China expanded its rare earth export controls.
In response on Friday, U.S. President Donald Trump said he would impose 100 per cent tariffs on China’s U.S.-bound exports, along with new export controls on “any and all critical software” by November 1.
However, Trump later said on Truth Social: “Don’t worry about China, it will all be fine!”
The moves come ahead of a potential meeting between Trump and his Chinese counterpart, Xi Jinping, on the sidelines of the Asia-Pacific Economic Cooperation forum in South Korea.
Analysts said there was still the risk of trade tensions escalating that might lead to higher tariffs or more serious export restrictions, at least temporarily.
China’s crude imports in September rose 3.9 per cent from a year earlier to 11.5 million barrels per day, customs data showed, as refineries operated at their highest utilization rates so far this year and as stockpiling efforts continued.
