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.

Refueling a vehicle at a gas station in Cairo, Egypt. Photo: AFP/VNA

At the close of trading on the Singapore electronic exchange, North Sea Brent crude for November 2025 delivery rose 47 cents, or 0.71%, to $66.41 per barrel. US West Texas Intermediate (WTI) crude rose 44 cents, or 0.72%, to $61.94 per barrel. Brent and WTI crude prices surged by 8.9% and 7.7% respectively last week due to US and European Union sanctions against Russia.

Haitong Securities said market sentiment improved thanks to new sanctions against Russia and signs of easing in US-China relations, offsetting concerns about oversupply that had driven oil prices down in early October 2025.

On October 26, US Treasury Secretary Scott Bessent said that US and Chinese officials had “built a substantial framework” for a trade agreement, paving the way for President Donald Trump and President Xi Jinping to discuss trade cooperation this week. According to Bessent, this framework will help avoid the US imposing 100% tariffs on Chinese goods and simultaneously delay China's imposition of export controls on rare earth minerals.

According to IG Markets expert Tony Sycamore, this trade negotiation framework also helps alleviate concerns that Russia might 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.

However, Haitong analyst Yang An warns that if sanctions on Russian energy do not have the expected effect, oversupply pressure could return to the market.

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