Oil prices climbed to multi-week highs on Monday, supported by a weaker U.S. dollar and optimism surrounding U.S.-China trade talks in London. Brent crude settled up 57 cents at $67.04 a barrel, reaching its highest level since April 28, while U.S. West Texas Intermediate (WTI) rose 71 cents to $65.29, its highest since early April.
The dollar index dropped 0.3%, making oil more affordable for holders of other currencies and bolstering demand. This follows a strong week for crude, with Brent up 4% and WTI gaining 6.2% on hopes that easing trade tensions could lift the global economy and energy consumption.
President Trump and President Xi held a phone call last Thursday ahead of Monday’s London meetings between U.S. and Chinese officials. Investors are betting that a trade resolution could reverse some of the damage to global demand caused by tariffs and uncertainty.
Despite weak Chinese economic data—exports slowed and crude imports fell in May—analysts say trade optimism is overriding bearish signals for now. WTI was pushing technical resistance levels before the release of the disappointing Chinese data.
Meanwhile, OPEC’s output in May rose by 150,000 barrels per day, less than the group’s planned increase. Saudi Arabia led the gain, while Iraq reduced production to make up for past overproduction. Still, the market remains focused on trade developments rather than short-term supply shifts.