Oil prices rose on Monday on hopes that talks between the US and Chinese presidents could ease trade tensions
Oil prices recouped some of their losses as investors focused on US-China trade talks. Oil prices rose on Monday after reaching five-month lows in the previous session, driven by hopes that potential talks between the US and Chinese presidents could ease trade tensions between the world's two largest economies and oil consumers.
Trump said he would impose 100% tariffs on Chinese exports to the US on November 1st.
Brent crude futures rose 92 cents, or 1.47%, to $63.65 a barrel by 06:22 GMT, after falling 3.82% on Friday to the lowest level since May 7th.
WTI Crude Oil rose 89 cents, or 1.51%, to $59.79 a barrel after falling 4.24% on Friday to its lowest level since May 7.
WTI prices will close on Tuesday due to a public holiday in parts of the US on Monday.
Last week's price decline was largely due to the ceasefire in Gaza and the return of volatility in US-China trade.
The sell-off in the markets appears to be limited by both sides' willingness to negotiate.
Trade tensions between the US and China flared last week after China expanded rare earth export controls. In response, Trump, turning a new page on Friday, said he would impose 100% tariffs on Chinese exports to the US and impose new export controls on "critical software" by November 1.
These 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.
There is a risk of escalating trade tensions that could lead to temporarily higher tariffs or more severe export restrictions.
Oil prices fell in March and April, when trade tensions between the two countries were at their highest this year.
Customs data show that China's crude oil imports rose 3.9% year-over-year to 11.5 million barrels per day in September, as refineries operated at their highest capacity utilization rate ever and stockpiling continued.
In the Middle East, the Palestinian militant group Hamas released the first seven surviving Israeli hostages on Monday. An official involved in the operation said it was the first phase of Trump's ceasefire agreement aimed at ending the conflict in Gaza.
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