Oil prices climbed on Monday, supported by positive signals from US-China trade talks, fuelling hopes of improved demand from the world's top two crude consumers. Brent crude rose 43 cents to $64.34 a barrel, while US West Texas Intermediate (WTI) gained 48 cents to $61.50 by 0500 GMT. The gains followed a strong week, with both benchmarks rising over 4 per cent—their first weekly increase since mid-April—after the US reached a trade deal with the UK and weekend talks with China concluded on a positive note. Officials from both countries cited "important consensus" and progress towards reducing the US trade deficit, though no details were released. Moreover, analysts said optimism around trade talks lifted sentiment, but expectations of increased output from OPEC+ in the coming months capped gains. Meanwhile, OPEC's production dipped slightly in April, and ongoing US-Iran nuclear talks continued, raising the possibility of more Iranian oil returning to markets. Adding further support, US energy firms cut active oil and gas rigs to their lowest level since January, according to Baker Hughes. Attribution: Reuters Subediting: M. S. Salama
