Oil prices climbed nearly 2% in Asian trading on Monday, recovering from sharp losses last week after U.S. President Donald Trump signaled a more conciliatory approach toward China. The rebound follows heightened market anxiety over escalating trade tensions that had weighed heavily on global demand forecasts.
As of 21:58 ET (01:58 GMT), Brent crude futures for December delivery rose 1.7% to $63.78 per barrel, while West Texas Intermediate (WTI) crude gained 1.8% to $59.95. Both benchmarks had plunged almost 4% to five-month lows on Friday after Trump announced plans to impose an additional 100% tariff on Chinese imports, sparking fears of slower economic growth and weaker oil consumption.
Over the weekend, however, Trump struck a more reassuring tone on Truth Social, stating, “Don’t worry about China, it will all be fine,” and emphasizing that the U.S. aims to “help China, not hurt it.” His remarks fueled optimism that trade negotiations could continue, easing investor jitters and supporting a modest recovery across commodities.
Despite the rebound, analysts caution that the outlook remains fragile. A ceasefire between Israel and Hamas, brokered by Trump, has helped reduce geopolitical risk in the Middle East—traditionally a bullish factor for oil prices. However, the relief was tempered by persistent concerns over oversupply. The U.S. Energy Information Administration (EIA) recently raised its 2025 crude production forecast to a record 13.53 million barrels per day, underscoring expectations of robust U.S. output growth.
Meanwhile, OPEC+ continues its gradual production increases, with plans to raise output by about 137,000 barrels per day in November. The group’s move reflects a balancing act between maintaining price stability and preventing a global supply glut that could cap further price gains.