Brent oil jumps on U.S.-China trade war ceasefire

Brent oil jumps on U.S.-China trade war ceasefire

Oil prices soared by around 5% on Monday after the United States and China agreed to a 90-day truce in their trade war, and ahead of a meeting this week by producer club OPEC that is expected to result in a supply cut.

Brent crude oil futures were up $2.89 per barrel (4.95) at $62.35 a barrel, Reuters reported.

WTI crude futures were at $53.41 per barrel at 0622 GMT, up $2.48 per barrel (4.9%) from their last close.

U.S. crude prices were further pushed up by an announcement from Canada that Alberta province will force producers to cut output by 8.7%, or 325,000 barrels per day (bpd), to deal with a pipeline bottleneck that has led to crude building up in storage. Most of Alberta's oil is exported to the United States.

China and the United States agreed during a weekend meeting in Argentina of the G20 leading economies not to impose additional trade tariffs for at least 90 days while the pair hold talks to resolve existing disputes.