Oil edges higher as U.S., China seek to de-escalate trade tensions

[Data analyzing in commodities energy market: the charts and quotes on display. US WTI crude oil price analysis. Stunning price drop for the last 20 years.]
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Crude oil futures rose Monday, recovering some of the previous session's sharp losses, after President Trump followed his threat of hefty tariffs on China with a more conciliatory tone over the weekend, two days after saying he would impose an additional tariff on imports from China.

An expected meeting between Trump and Chinese President Xi Jinping later this month was thrown into question after Trump's Friday comments, but U.S. Treasury Secretary Bessent said the meeting could still happen in South Korea on the sidelines of the Asia-Pacific Economic Cooperation forum and noted substantial communications between the two sides during the weekend.

Keeping a lid on the rebound were continuing concerns about oversupply in the global oil market and an easing geopolitical risk premium in the Middle East after Israel and Hamas agreed to the first phase of a U.S.-brokered plan for a ceasefire and hostage release in Gaza.

In its monthly outlook [https://www.opec.org/monthly-oil-market-report.html], OPEC held its oil demand growth estimate at 1.3 million bbl/day for 2025 and 1.38 million bbl/day for 2026, but said the threat of the U.S. reimposing 100% tariffs on China has "once again underscored the lingering uncertainty surrounding trade policy."

Front-month Nymex crude (CL1:COM [https://seekingalpha.com/symbol/CL1:COM]) for November delivery ended +1% to $59.49/bbl, and front-month Brent crude (CO1:COM [https://seekingalpha.com/symbol/CO1:COM]) for December delivery closed +0.9% to $63.32/bbl, snapping a two-session losing streak for both benchmarks, while front-month Nymex November natural gas (NG1:COM [https://seekingalpha.com/symbol/NG1:COM]) settled +0.4% to $3.118/MMBtu, snapping a three-day losing streak.

ETFs: (NYSEARCA:USO [https://seekingalpha.com/symbol/USO]), (BNO [https://seekingalpha.com/symbol/BNO]), (NYSEARCA:UCO [https://seekingalpha.com/symbol/UCO]), (SCO [https://seekingalpha.com/symbol/SCO]), (USL [https://seekingalpha.com/symbol/USL]), (DBO [https://seekingalpha.com/symbol/DBO]), (DRIP [https://seekingalpha.com/symbol/DRIP]), (GUSH [https://seekingalpha.com/symbol/GUSH]), (USOI [https://seekingalpha.com/symbol/USOI]), (UNG [https://seekingalpha.com/symbol/UNG]), (BOIL [https://seekingalpha.com/symbol/BOIL]), (KOLD [https://seekingalpha.com/symbol/KOLD]), (UNL [https://seekingalpha.com/symbol/UNL]), (FCG [https://seekingalpha.com/symbol/FCG]), (NYSEARCA:XLE [https://seekingalpha.com/symbol/XLE])

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