Oil prices increased on Monday after US and Chinese trade delegations reported progress in negotiations, easing concerns over the global economy and supporting market sentiment.
Brent crude was trading at $65.42 per barrel at 10.09 a.m. local time (0709 GMT), up 0.34% from the previous close of $65.20.
US benchmark West Texas Intermediate (WTI) also rose 0.37% to $61.73, compared to $61.50 in the prior session.
The trade talks, led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent, took place on October 25-26 in Malaysia's capital, Kuala Lumpur. Following the sessions, both sides reported they had reached a framework for US President Donald Trump and Chinese President Xi Jinping to discuss in South Korea on Thursday.
Expectations of a US Federal Reserve (Fed) rate cut also supported oil prices. US Consumer Price Index (CPI) data, delayed by the federal government shutdown, came in below forecasts, boosting market bets that the Fed will cut interest rates by 25 basis points at its October 28-29 meeting and continue easing in December.
Meanwhile, concerns persist over the impact of US sanctions on Russia's oil sector. Analysts remain cautious, noting that Russia has historically circumvented such restrictions, while market attention focuses on whether major Russian oil buyers, including India and China, will yield to US pressure.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr
