Oil Prices Rise on US-China Trade Deal Framework

Oil prices increased on October 27, 2025, after U.S. and Chinese officials announced a trade-deal framework, easing global growth concerns. As of early Monday morning, Brent crude futures rose to $66.40 a barrel, and U.S. West Texas Intermediate (WTI) crude futures reached $61.96.

Haitong Securities noted that market expectations improved after new sanctions on Russia and the easing of U.S.-China tensions, countering earlier concerns about crude oversupply.

U.S. Treasury Secretary Scott Bessent said top Chinese and U.S. officials outlined a ‘substantial framework” for a trade deal in Kuala Lumpur, allowing President Trump and President Xi Jinping to discuss trade cooperation later this week. 

The framework would avoid full U.S. tariffs on Chinese goods and delay China’s rare-earth export controls. Trump expressed optimism about reaching an agreement and expected meetings in China and the U.S. Trump said, ‘I think we’re going to have a deal with China,’ indicating planned meetings in China and the U.S., possibly in Washington or Mar-a-Lago.

The positive trade outlook offsets worries that Russian sanctions targeting Rosneft and Lukoil could be bypassed through discounts and shadow fleets, said market analyst Tony Sycamore.

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However, if Russian energy sanctions are less effective, oversupply pressures may return, said Haitong Securities analyst Yang An.