Oil prices rose on Monday as US President Donald Trump plans to meet his Chinese counterpart, Mr Xi Jinping, later in October, easing a flare-up in trade tensions between the world’s top two economies.
Brent crude futures gained 59 cents or 0.9 per cent to trade at $63.32 a barrel, and the US West Texas Intermediate (WTI) crude futures also appreciated by 59 cents or 1 per cent to $59.49 a barrel.
Last week, President Trump threatened to cancel the meeting with Mr Jimping and impose steep new tariffs on imports from China, sending prices down by 4 per cent.
China expanded its export controls on rare earths, a move widely interpreted as a counter to the US’ trade measures. In response, President Trump announced plans to impose 100 per cent tariffs on all Chinese exports bound for the US and to introduce new export controls on “any and all critical software” by November 1.
However, US Treasury Scott Bessent said on Monday that the meeting between the US and Chinese leaders remains on track to be held at the upcoming APEC summit in South Korea, later this month.
On the demand side, China’s crude imports in September rose 3.9 per cent from a year earlier to 11.5 million barrels per day.
The Organisation of the Petroleum Exporting Countries and allies (OPEC+) kept its relatively high global oil demand growth forecasts unchanged for this year and next.
The cartel anticipates global oil demand to reach an average of 105.1 million barrels per day this year and 106.5 million barrels per day next year, with emerging markets being key drivers.
Next year, global oil demand is set to grow by 1.4 million barrels per day compared to this year, also unchanged from the September assessment of the oil-producing cartel. Emerging markets will drive next year’s demand growth, too. Average global oil demand will reach 106.5 million barrels per day next year, OPEC noted.
In a related development, OPEC+ continues to follow a cautious production strategy, gradually unwinding voluntary cuts to prevent renewed oversupply. The group’s restraint has helped steady the market in recent weeks.
Meanwhile, prospects of peace in the Middle East limited gains in oil prices. Palestinian militant group Hamas freed the last 20 surviving Israeli hostages on Monday under a US-brokered ceasefire deal.