Oil Prices Recover as Hopes Rise for US-China Trade Talks

Sana'a: Oil prices recovered some ground on Monday, after hitting five-month lows in the previous session, amid hopes that potential talks between the US and Chinese presidents could ease trade tensions between the world's two largest economies and oil consumers. Brent crude futures rose 87 cents, or 1.39 percent, to $63.60 a barrel, after settling down 3.82 percent on Friday to their lowest level since May 7. U.S. West Texas Intermediate (WTI) crude rose 87 cents, or 1.48 percent, to $59.77 a barrel, after falling 4.24 percent to its lowest level since May 7. According to Yemen News Agency, trade tensions between the United States and China flared last week after China expanded its restrictions on rare earth exports. This action prompted US President Donald Trump to retaliate on Friday by imposing 100 percent tariffs on Chinese exports to the United States, along with new controls on all critical software exports by November 1. The prospect of potential talks between the US and Chinese leadership is seen a s a positive development by market participants, who are hopeful that such discussions could lead to an easing of trade tensions. This optimism contributed to the recovery in oil prices, as both countries are major consumers of oil. The recent fluctuations in oil prices highlight the impact of geopolitical tensions on global markets, especially when involving significant economic powers like the US and China.