FX.co ★ Oil Edges Up from 5-Month Low

On Monday, WTI crude oil futures rose to $59.5 per barrel, bouncing back from a five-month low as optimism grew regarding potential easing of US-China trade tensions. This uplift in sentiment was driven by comments from President Donald Trump and Vice President JD Vance, who toned down their rhetoric towards Beijing following the previous week's announcement of new 100% tariffs and export controls. Trump indicated that the US could still maintain favorable relations with China, although the planned tariffs set for November 1 are still expected to be implemented. He also alluded to the possibility of supplying Ukraine with long-range Tomahawk missiles, a move that could potentially exacerbate risks to oil supplies from OPEC+ producers. Nevertheless, despite this rebound, oil prices continue to face downward pressure due to increasing supply; OPEC and its allies amplified output by 630,000 barrels per day in September, sparking concerns about a potential supply surplus later in the year. Furthermore, geopolitical risks in the Middle East have diminished following a ceasefire between Israel and Hamas, as Hamas released all remaining Israeli hostages from Gaza.