Crude prices traded sharply in the green on Monday as investors digested the news that the United States and China agreed to pause their trade war for 90 days.
The American benchmark West Texas Intermediate jumped 5% while international benchmark Brent gained over 4.5% as market watchers grew more optimistic of the global economic expansion outlook following the slight easing of trade tensions between the two world powers.
Meanwhile, investment incentives were also heightened as traders continue to anticipate the Organization of the Petroleum Exporting Countries (OPEC) meeting set for December 6 in Vienna where the parties are due to discuss the new output cut deal. Additionally, traders also digested the news that Qatar is withdrawing from the cartel in January next year.
WTI for January delivery gained 5.05%, changing hands for $53.53 per barrel at 6:38 am GMT while Brent for settlements in February added 4.73% to trade for $62.36 per barrel at 6:39 am GMT.