Oil prices rise after US and China reach trade-deal framework

Oil prices rose in early trade on Monday after US 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, Report informs via Reuters.

Brent crude futures rose 46 cents, or 0.7%, to $66.40 a barrel by 0027 GMT. US West Texas Intermediate crude futures rose 46 cents, or 0.75%, to $61.96, after rising 8.9% and 7.7%, respectively, in the previous week on US and EU sanctions on Russia.

Haitong Securities said in a note that market expectations have improved following new sanctions on Russia and the easing of US-China tensions, countering concerns about crude oversupply that had driven prices down earlier in October.

US Treasury Secretary Scott Bessent said on Sunday that top Chinese and US economic officials had hashed out a "very substantial framework" for a trade deal in Kuala Lumpur, which would allow President Donald Trump and President Xi Jinping to discuss trade cooperation later this week.

Bessent said the framework would avoid 100% US 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.