West Texas Intermediate (WTI) crude Oil recovered around 2.5% in Monday’s Asian session, trading near $59.40 after losing more than 5.0% in the previous session. The rebound came as investors reacted positively to US President Donald Trump’s conciliatory remarks on China, which helped ease concerns over renewed trade tensions that had earlier weighed on global growth prospects and Oil demand.
Trump’s softer tone boosts sentiment
After threatening to impose 100% tariffs on Chinese imports starting November 1, Trump softened his tone on Sunday, saying that China’s economy “will be fine” and that the US seeks to “help China, not hurt it.” He added that there was no need to meet Chinese President Xi Jinping at the upcoming South Korea summit.
China, however, warned it would retaliate if tariffs were implemented, keeping some uncertainty in the background. The easing rhetoric nonetheless supported a modest recovery in risk appetite, lifting crude prices.
Easing geopolitical tensions in the Middle East
Oil’s gains were partially capped by diminishing supply risks following Trump’s announcement that the Gaza conflict “is over.” According to Reuters, Trump is expected to receive a hero’s welcome in Israel’s parliament on Monday as the Gaza ceasefire—brokered with his mediation—enters its fourth day.
The ongoing release of Israeli hostages and Palestinian prisoners has signaled cautious progress in stabilizing the region, alleviating fears of further supply disruptions.
China’s crude imports rise in September
On the demand side, data from China’s General Administration of Customs showed that the country’s annual crude Oil imports rose 3.9% in September, as refineries ramped up production to their highest utilization rates of the year.
China imported 47.25 million metric tons of crude, equivalent to 11.5 million barrels per day, suggesting a steady recovery in industrial activity and offering additional support to global Oil demand.
