Oil prices rebound after Trump tempers China trade stance

Published 13/10/2025, 03:04
Updated 13/10/2025, 14:16
© Reuters

Investing.com - Oil prices moved higher on Monday, rebounding from steep declines in the previous trading session, as comments from U.S. President Donald Trump eased some investor concerns over escalating trade tensions with China.

As of 08:48 ET (12:48 GMT), Brent oil futures expiring in December jumped 0.9% to $63.30 per barrel, while West Texas Intermediate (WTI) crude futures climbed 1.0% to $59.49 per barrel.

Both benchmarks had fallen nearly 4% to five-month lows on Friday after Trump said he would impose an additional 100% tariff on imports from China, raising fears of weaker global oil demand.

But Trump appeared to soften his tone over the weekend, telling markets to “not worry about China” and suggesting Washington was not planning an immediate escalation. The shift helped calm some nerves, but traders remained wary of unpredictable policy shifts from the White House.

Beijing, at the same time, backed its export curbs on rare earth elements and equipment as a necessary reaction to U.S. aggression, although it did not place new duties on U.S. items.

Oversupply worries remain in focus

Meanwhile, a ceasefire agreement between Israel and Hamas -- brokered by President Trump -- has reduced geopolitical tensions in the Middle East, putting a cap on oil price gains.

The broader sentiment remained fragile as concerns about oversupply persisted. The U.S. Energy Information Administration (EIA) last week raised its 2025 crude output forecast to a record 13.53 million barrels per day, pointing to stronger U.S. supply growth.

At the same time, OPEC+ is pressing ahead with a gradual increase in production. The producer group agreed earlier this month to raise output by about 137,000 barrels per day in November, the smallest of the options discussed, in a bid to balance market stability with the risk of a growing glut.

Elsewhere, OPEC left its estimate for global oil demand growth unchanged for this year and in 2026 in a monthly report on Monday, and implied that the oil market will see a smaller supply deficit.

(Scott Kanowsky contributed reporting.)

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