LONDON, Oct 13 (Reuters) – Oil prices rose on Monday after hitting five-month lows in the previous session, as investors focused on potential talks between the presidents of the United States and China that could ease trade tensions between the world’s two largest economies.
Brent crude futures rose $1.08, or 1.7%, to $63.81 a barrel by 1056 GMT. U.S. West Texas Intermediate crude was at $60.03 a barrel, up $1.13, or 1.92%. Both contracts lost around 4% on Friday to settle at their lowest since May.
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“Last week’s price meltdown was largely on the back of ceasefire in Gaza and return of U.S.-China trade volatility ahead of the November 10 trade truce deadline,” DBS energy analyst Suvro Sarkar said.
The selloff in markets now looked to be capped by Washington and Beijing’s willingness to negotiate, he said, adding the near-term outlook hinged on the eventual outcome of the trade talks.
An expected meeting between Trump and Chinese President Xi Jinping later this month was in doubt after Trump said on Friday there was no reason to meet his counterpart. U.S. Trade Representative Jamison Greer said on Sunday that a meeting could still happen in South Korea on the sidelines of the Asia-Pacific Economic Cooperation forum.
Oil prices tumbled in March and April at the height of trade tensions between the two countries.
Reporting by Enes Tunagur in London, Florence Tan in Singapore; Editing by Jamie Freed, Kirsten Donovan and Susan Fenton
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