By Sam Li and Lewis Jackson
(Reuters) -Oil prices rose on Monday after U.S. and Chinese economic officials sketched out a trade-deal framework, easing fears that tariffs and export curbs between the world’s top two oil consumers could dent global economic growth.
Brent crude futures rose 47 cents, or 0.71%, to $66.41 a barrel by 0629 GMT. U.S. West Texas Intermediate crude futures rose 44 cents, or 0.72%, to $61.94, after rising 8.9% and 7.7%, respectively, in the previous week on U.S. and EU sanctions on Russia.
Haitong Securities said in a client note that market expectations have improved following new sanctions on Russia and the easing of U.S.-China tension, countering concern about crude oversupply that had driven prices down earlier in October.
U.S. Treasury Secretary Scott Bessent on Sunday said U.S. and Chinese officials hashed out a “very substantial framework” for a trade deal which would allow President Donald Trump and President Xi Jinping to discuss trade cooperation this week.
Bessent said the framework would avoid 100% U.S. tariffs on Chinese goods and achieve a deferral of China’s rare-earth export controls.
Trump also said on Sunday he was optimistic about reaching an agreement with Beijing and expected to hold meetings 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.”
The trade-deal framework helps allay concern that Russia could offset new U.S. sanctions, targeting Rosneft and Lukoil, by offering deeper discounts and using shadow fleets to lure buyers, said IG market analyst Tony Sycamore.
“However, if sanctions on Russian energy are less effective than expected, oversupply pressures could return to the market,” said Haitong Securities analyst Yang An.
(Reporting by Sam Li and Colleen Howe; Editing by Sonali Paul and Christopher Cushing)