LONDON: Oil prices rose more than 3% on Monday after the U.S. and China said they would ease some of their tariff measures, raising hopes of an end to the trade war between the world's two largest consumers of crude oil.
Brent crude futures climbed $2.03, or 3.18%, to $65.94 a barrel by 0942 GMT. U.S. West Texas Intermediate (WTI) crude futures were trading up $2.06, or 3.38%, at $63.08.
The U.S. and China on Monday announced agreement on a temporary pause on tariffs after talks in Geneva over the weekend. The two sides agreed to a 90-day pause and said tariffs would be cut by more than 100 percentage points to a 10% baseline rate.
"Global equity markets and procyclical commodities have responded very positively," said Saxo Bank analyst Ole Hansen.
The Geneva meetings were the first face-to-face interactions between senior U.S. and Chinese economic officials since U.S. President Donald Trump returned to power and launched a spate of tariffs on trading partners across the globe.
Positive talks between the world's two largest economies could help to boost demand as trade between the countries is restored.
Both oil benchmarks had gained more than 4% last week after a U.S. trade deal with Britain swelled investor optimism that economic disruptions from U.S. tariffs on trading partners may be avoided.
Additionally, talks between Iranian and U.S. negotiators to resolve disputes over Tehran's nuclear programme ended in Oman on Sunday with further negotiations planned, officials said, as Tehran publicly insisted on continuing its uranium enrichment.
A U.S.-Iran nuclear deal could alleviate concerns about lower global oil supply, which could also pressure oil prices. - Reuters
