Oil prices rose by more than 1% on Monday, lifted by optimism that talks could soon resolve the trade war between the United States and China, while supply cuts by major producers also supported the market.
Brent crude futures were at $57.75 per barrel, up 69 cents, or 1.2%, from their last close, CNBC reported.
US West Texas Intermediate crude oil futures were at $48.67 per barrel, up 71 cents, or 1.5%.
Financial markets were riding a relief rally on Monday on expectations that face-to-face trade negotiations between delegates from Washington and Beijing, due to start on Tuesday, would lead to an easing in tensions between the two biggest economies in the world.
The United States and China have been locked in an escalating trade spat since early 2018, raising import tariffs on each other’s goods. The dispute has weighed on economic growth.
Goldman Sachs said in a note on Monday it had downgraded its average Brent crude oil forecast for 2019 from $70 per barrel to $62.50 a barrel because of “the strongest macro headwinds since 2015.”
J.P. Morgan, another US bank, said in a note late last week that “the 3% global growth pace we have been anticipating for the next two quarters looks increasingly challenging.