Oil prices rise as oversupply concerns ease

Oil prices rose in Asia on Monday as US and Chinese economic officials outlined a framework for a bilateral trade deal, easing concerns that escalating tariffs and export restrictions between the world’s two largest economies could stifle global growth.

Pumping gas for vehicles at a gas station in Cairo, Egypt. Photo: AFP/TTXVN

At the end of this session, on the Singapore electronic exchange, the price of North Sea Brent crude oil for November 2025 delivery increased by 47 US cents, equivalent to 0.71%, to 66.41 USD/barrel. The price of US light sweet crude oil (WTI) increased by 44 US cents, equivalent to 0.72%, to 61.94 USD/barrel. The price of Brent oil and WTI oil increased sharply by 8.9% and 7.7%, respectively, last week due to the sanctions of the US and the European Union against Russia.

Haitong Securities said market sentiment had improved thanks to new sanctions on Russia and signs of cooling in US-China relations, offsetting concerns about oversupply that had sent oil prices tumbling in early October.

US Treasury Secretary Scott Bessent said on October 26 that US and Chinese officials have “built a substantial framework” for a trade deal, paving the way for President Donald Trump and President Xi Jinping to discuss trade cooperation this week. According to Mr. Bessent, this framework will help avoid the US imposing 100% tariffs on Chinese goods and at the same time delay China imposing export controls on rare earths.

The trade talks framework also helps ease concerns that Russia may seek to offset the impact of new US sanctions – which target Rosneft and Lukoil – by offering deeper discounts or using “secret fleets” to attract buyers, according to IG Markets analyst Tony Sycamore.

However, Haitong analyst Yang An warned that if the Russian energy sanctions do not work as expected, oversupply pressure could return to the market.

Source: https://baotintuc.vn/thi-truong-tien-te/gia-dau-tang-khi-lo-ngai-ve-du-cung-dieu-bot-20251027154709585.htm