Crude oil prices hit their first weekly rise since mid-April amid US-China talks

Oil prices posted their first weekly gain since mid-April, supported by the US-UK trade deal, which generated optimism among investors ahead of talks between senior officials in Washington and Beijing.

Brent crude rose $1.07, or 1.7%, to $63.91 a barrel on Friday. U.S. West Texas Intermediate crude gained $1.11, or 1.85%, to $61.02, and Mexican export blend crude climbed 2.14% to $57.21.

In their weekly comparison, Brent contracts rose 4.27%, WTI contracts advanced 4.68%, and the Mexican blend 4.63%.

This is the first weekly increase after two consecutive weeks of losses, during which the price fell 9.88%, so the weekly gains can be considered partly a correction.

So far this year, Brent crude prices have fallen 14.38 percent, WTI 13.05 percent, and Mexican crude 13.63 percent.

Brent crude futures opened trading Monday at $64.22 per barrel, up 0.49 percent, and WTI crude futures at $61.38, up 0.56 percent.

Agreements that promote

US President Donald Trump said China should open its market to the United States and that imposing 80% tariffs on Chinese goods "seems appropriate," a day after announcing a deal to reduce tariffs on British car and steel exports, among other agreements with the United Kingdom.

“Oil prices rose, driven by the start of talks between the United States and China, which began on Saturday. Market participants remain optimistic, motivated by various comments from Trump, who said on Thursday that it was a good time to buy stocks, hinting at a possible reduction in tariffs on various countries,” Valmex analysts said.

"The increase was driven by greater optimism about demand, as the United States reached a trade agreement with the United Kingdom last week. Trump said the final details will be negotiated in the coming weeks, but hailed the agreement as a major breakthrough, as it will expand access for US products to the UK market," noted Gabriela Siller, director of analysis at Banco Base, in a report.

He also highlighted that risk aversion has decreased due to the confirmation that the United States and China will begin trade talks.

"It's worth noting that, despite trade tensions, the Chinese government published positive trade indicators, which also pushed up oil prices," he noted.

"Energy markets, despite their bearish bias, are finally shaking off their pessimism and capturing the broader optimism that is resurfacing as progress in trade relations begins," said Alex Hodes, an oil analyst at brokerage StoneX.

The agreement with the United Kingdom and Trump's comments about China have raised hopes for similar agreements between Washington and Beijing.

U.S. Treasury Secretary Scott Bessent met with China's top economist, Vice Premier He Lifeng, over the weekend.

Finally, the upward pressure was also due to the expectation of lower supply, as the European Commission proposed adding more people and more than 100 vessels linked to the Russian parallel fleet to the 17th package of sanctions against the Russian government.

Additionally, geopolitical risks in the Middle East have increased after Israel attacked Houthi targets in Yemen in retaliation for an attack on Ben Gurion Airport.

Meanwhile, the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, plan to increase crude oil production, keeping pressure on oil prices. (With information from agencies)