FX.co ★ Oil Gains on US-China Trade Deal Optimism

WTI crude oil futures increased to nearly $62 per barrel on Monday, marking their highest position in more than two weeks. This rise is driven by optimism over a potential trade agreement between the US and China, which has improved the demand outlook. US Treasury Secretary Scott Bessent announced on Sunday that a “substantial framework” had been reached with Chinese Vice Premier He Lifeng. This will be further explored when the leaders of both nations convene later in the week. Beijing confirmed that the discussions yielded preliminary agreements on pivotal topics such as export controls, fentanyl, agricultural commodities, and shipping tariffs. Further bolstering oil prices are persistent worries about Russian oil supply. The US recently introduced new sanctions against Rosneft and Lukoil, two companies that collectively contribute almost half of Russia’s oil exports and play a significant role in supporting the Kremlin's financial resources.