Oil gains amid progress in US-China trade talks

Oil prices rose on Monday morning as the US and China reported progress in trade talks. This boosted investor expectations for a resolution of tensions between the world’s two biggest crude consumers, Reuters says. 

Oil gained 4% last week, which became the first weekly rise since mid-April, the news agency notes.

On Sunday, the United States and China ended their talks on a positive note. The US side reported a deal to reduce the trade deficit, while China announced an important consensus. Yet, neither side provided any details of the talks. According to Chinese Vice Premier He Lifeng, a joint statement is to be released on Monday. 

A positive outcome of talks between the world's two leading economies could help boost demand for crude oil as trade between the US and China is recovered after being disrupted by massive import tariffs from both countries. 

Meanwhile, Toshitaka Tazawa, an analyst at Fujitomi Securities, believes the lack of definite negotiation results and OPEC+ plan to increase crude production hold back the growth of oil prices.