Nigerian crude settled near $67 a barrel as oil buyers returned to the depressed energy market.
Oil prices rallied strongly during the first trading session of the week after steep declines last Friday. Nigerian Bonny Light held firm at the $67 mark, while major oil blends such as Brent crude also gained strongly.
Investors have become cautiously optimistic that potential negotiations between Presidents Trump and Xi could ease tensions between the world’s two largest economies.
President Trump wrote on Truth Social that the U.S. wants to “help China, not hurt it,” and that the Chinese economy “will be fine.” However, on Sunday, Trump threatened to impose 100% tariffs on Chinese imports, saying there was no need to meet with Chinese President Xi Jinping at the upcoming summit in South Korea. In response, China warned it would retaliate if Trump did not withdraw his pledge to impose the tariffs.
Brent crude traded at $63.76, while WTI crude rose 2% to $59.92. This recovery followed a more than 4% drop in oil prices on Friday, which brought them to their lowest levels since early May.
Why the decline
The decline was attributed to growing economic and geopolitical uncertainty, particularly after China expanded its rare earth export restrictions last Thursday. The move was widely interpreted as a reaction to trade restrictions imposed by Washington.
Trump earlier announced plans to increase export controls on “any critical software” by November 1 and to impose 100% tariffs on all Chinese exports to the U.S. The resulting panic caused oil prices to plummet, shaking global markets; however, traders now appear to be recovering their confidence.
The two leaders are scheduled to meet later this month at the APEC summit in South Korea, and traders are betting that both sides will seek a diplomatic resolution. Analysts at Goldman Sachs expressed concerns over whether the new trade restrictions would actually be implemented or if they were simply negotiating tactics.
The bank noted that both parties are likely to retract their most aggressive policies and that negotiations may lead to a further—and possibly indefinite—extension of the tariff escalation pause reached in May.
Crude prices were significantly oversold, prompting a wave of bargain hunting among traders who believed the decline was excessive. Given that fundamental factors remain complicated by conflicting signals from supply and demand, this rebound reflects investors positioning for short-term stability rather than a long-term rally.
OPEC+ continues to maintain a cautious production strategy to prevent oversupply, gradually reversing voluntary cuts. Despite uncertainties surrounding global demand growth, the group’s restraint has helped stabilize the market in recent weeks.
Currently, oil markets remain precariously balanced between the risks of further economic fragmentation and hopes for a diplomatic breakthrough. Crude prices could find stronger footing if trade tensions ease and demand indicators stabilize, but volatility is expected to persist in the coming weeks.
Oil prices also struggled as supply concerns eased following Trump’s announcement on Sunday that the war in Gaza is over, ahead of hostage releases and his scheduled speech to Israel’s parliament.
Trump is expected to be greeted as a hero in Israel’s parliament on Monday as the ceasefire he helped broker in Gaza enters its fourth day, with the anticipated release of Israeli hostages and Palestinian prisoners marking cautious progress in the long-running conflict.
Nigeria’s Oil Industry Soars with First Locally Owned Floating Vessel
Nigeria has launched its first fully owned Floating Storage and Offloading (FSO) vessel near the Bonny export terminal, as Africa’s top oil producer aims to modernize its crude export infrastructure.
The FSO, with a capacity of 2.2 million barrels, is located in the Eastern Niger Delta and designed to enhance crude oil production and transportation from Oil Mining Lease 18 and nearby assets. It is also expected to reduce reliance on pipelines and minimize the risks of oil theft and vandalism.
