Baghdad: Oil prices rose in early trading on Monday after US and Chinese economic officials outlined a framework for a trade deal between the two sides, alleviating concerns that tariffs and export restrictions between the world’s largest oil consumers could impact global economic growth. By 00:27 GMT, Brent crude futures rose 46 cents, or 0.7%, to $66.40 a barrel. US West Texas Intermediate (WTI) crude futures rose 46 cents, or 0.75%, to $61.96, after rising 8.9% and 7.7%, respectively, the previous week due to US and European sanctions on Russia.

According to National Iraqi News Agency, the recent developments in the US-China trade negotiations have been closely monitored by global markets, as these two nations are key players in international trade and economic growth. The framework for a trade deal has provided a boost to market confidence, signaling a potential easing of tensions that have affected various sectors, including the oil industry.

The increase in oil prices follows a significant rise in th
e previous week, influenced by geopolitical factors such as sanctions imposed by the US and Europe on Russia. These sanctions have had a notable impact on the global oil supply chain, contributing to fluctuations in oil prices.

The positive sentiment in the oil market is reflective of broader market optimism that a trade agreement could lead to increased stability and growth in the global economy. This stability is crucial for the oil industry, which is sensitive to changes in economic conditions and international relations.

Market analysts will continue to monitor the progress of the US-China trade deal negotiations and their effects on oil prices, as any significant developments could further influence the trajectory of global economic recovery.