Oil prices advanced during Asian deals on Monday trade after the United States and China outlined a framework for a potential trade deal, easing concerns that prolonged tariff and export curbs between the world’s two largest oil consumers could stifle global growth.
By 4:10 pm AEDT (5:10 am GMT), Brent crude futures rose 26 cents, or 0.4%, to $66.20 per barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 24 cents, or 0.4%, to $61.74.
Both benchmarks surged 8.9% and 7.7%, respectively last week following fresh U.S. and EU sanctions on Russia.
ANZ analysts commented in a note to clients: "Senior refinery executives at several Indian refiners said the restrictions would make it impossible for flows to continue.
"Chinese state-owned companies including Sinopec are said to have cancelled some purchases of seaborne Russian crude, adding to signs of disruption in the oil market.
"Overall, they account for more than 400kb/d of Russian shipments."
U.S. Treasury Secretary Scott Bessent said on Sunday that top Chinese and U.S. economic officials had reached a "very substantial framework" for a trade deal during talks in Kuala Lumpur, paving the way for President Donald Trump and President Xi Jinping to discuss trade cooperation later this week.
Bessent said the framework would remove the threat of 100% U.S. tariffs on Chinese imports and secure a deferral of China’s rare-earth export controls.
Trump also expressed optimism about reaching an agreement with Beijing, saying he expected to meet with Chinese officials both in China and the United States.
“I think we’re going to have a deal with China," Trump said. "We’re going to meet them later in China and we’re going to meet them in the U.S., either Washington or Mar-a-Lago."
