Oil prices have regained their losses and turned upwards during the volatile trading session on Monday, supported by progress in trade talks between the United States and China and a relative decline in the strength of the dollar, as investors assess supply outlooks.
Futures prices for Brent crude for December delivery rose by 0.40%, or 26 cents, reaching $66.20 per barrel at 4:08 PM Mecca time, after having dropped to $65.06 earlier in the session.
Similarly, futures prices for U.S. West Texas Intermediate (WTI) crude for December delivery increased by 0.45%, or 28 cents, hitting $61.78 per barrel, after falling to $60.67 earlier.
This comes after both crude types recorded gains of about 7% last week, driven by U.S. sanctions on the largest oil companies in Russia, despite data showing a surge in drilling activity in the United States on Friday.
The dollar index – which measures its value against a basket of major currencies – fell by 0.15% to 98.833 points, which typically boosts the prices of commodities priced in U.S. dollars.
Yesterday, U.S. Treasury Secretary “Scott Pelley” stated that officials from both sides reached a fundamental framework for a trade agreement that helps avoid imposing a 100% tariff on Chinese products.
However, concerns about excess supply remain, as Fatih Birol, the Executive Director of the International Energy Agency, noted that strong production growth in the Americas, along with weak demand for oil, adds additional pressure on prices.
