Oil prices hold above $63 a barrel on China-US trade talk optimism

Brent crude prices rose by 5 cents to $63.44 a barrel. (File photo: Reuters)

Oil prices held above $63 per barrel on Monday as positive commentary from Beijing and Washington rekindled hopes in global markets that the world’s two largest economies could soon sign a trade deal.

Brent crude prices rose by 5 cents to $63.44 a barrel, while US crude prices were up by 1 cent at $57.78 a barrel.

US President Donald Trump and Chinese President Xi Jinping expressed a desire to sign an initial trade deal, according to media reports.

“Oil prices eased slightly in Asia and early Europe, as profit taking continued following Friday’s rally in New York,” Forex trading firm Oanda Group’s analyst Jeffrey Halley told Al Arabiya English.

For oil prices to go higher, a “positive surprise” from OPEC+ will be required, or further trade developments, he said.

OPEC+ members will gather in Vienna next week, where they are expected to extend the current oil output curbs.

OPEC and its allies such as Russia, collectively known as OPEC+, are cutting oil output by 1.2 million barrels until March 2020 to support prices.

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Last Update: 13:52 KSA 16:52 - GMT 13:52
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