Oil prices rose on Monday after both sides in U.S.-China trade talks over the weekend touted progress, lifting market sentiment that the world's two largest crude users may be moving toward resolving their trade dispute.
Brent crude futures rose 43 cents, or 0.67%, to settle at $64.34 a barrel by 0500 GMT. U.S. West Texas Intermediate (WTI) crude futures were trading at $61.50 a barrel, up 48 cents, or 0.79%, from Friday's close.
Both benchmarks rose more than $1 on Friday and gained more than 4% last week for their first weekly gain since mid-April, after a U.S. trade deal with Britain raised investor optimism that economic disruption from U.S. tariffs on trading partners could be avoided.
United States. and China ended trade talks on a positive note on Sunday, with U.S. officials touting an "agreement" to reduce the U.S. trade deficit, while Chinese officials said the two had reached an "important consensus."
However, neither side released details of the talks with Chinese Vice Premier He Lifeng, who said a joint statement would be issued on Monday.
Positive talks between the world's two largest economies could help boost demand for crude as trade, currently disrupted by heavy tariffs imposed by both countries, recovers between them.
"Optimism over constructive U.S.-China talks supported sentiment, but limited details and OPEC's plan to raise output capped gains," said Toshitaka Tazawa, an analyst at Fujitomi Securities.
Tazawa was referring to a plan by the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, to accelerate output increases in May and June that would add more crude to the market.
However, a Reuters survey found that OPEC's oil output was slightly lower in April. Also, talks between Iranian and U.S. negotiators to resolve a dispute over Tehran's nuclear program ended in Oman on Sunday with plans for further negotiations, officials said, as Tehran has publicly insisted on continuing its uranium enrichment.
A U.S.-Iran nuclear deal could ease concerns about lower global oil supplies, which could also weigh on oil prices. (Newsmaker23)
Source: Reuters
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