Crude oil prices started Monday with losses having climbed on Friday to the highest level seen in three months as a result of the phase-one deal sealed between the U.S. and China.
The price of international benchmark Brent crude was trading at $65.08 per barrel at 0640 GMT on Monday with a 0.2% decline, while American benchmark West Texas Intermediate (WTI) was at $59.81 a barrel at the same time for a 0.4% loss.
After the much-anticipated trade deal, Brent climbed to as high as $65.79 per barrel on Friday, and WTI rose to $60.48 a barrel -- both gaining 1.5% for the day and marking their highest level since Sept. 17.
"We have agreed to a very large Phase One Deal with China," U.S. President Donald Trump said Friday on Twitter. "They have agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more."
The office of the U.S. Trade Representative said in a statement on Friday that Washington would be maintaining 25% tariffs on approximately $250 billion of Chinese imports, along with 7.5% tariffs on approximately $120 billion worth of Chinese imports.
Trump said the U.S. and China would immediately begin negotiations on a phase-two trade deal, rather than waiting until after the U.S. presidential election in 2020.
If a phase-two deal is reached quickly and smoothly, global oil demand could increase to provide support for oil prices.
By Ovunc Kutlu