Mubasher: Oil price increased on Monday, helped by China and US’ agreement to put trade war on hold.

Brent crudes stood at $79.13 per barrel (pb) earlier on Monday, $0.62 higher than their last close, while US Nymex futures reached $71.83 bp, inching up by $0.55 from their last session.

The world’s two largest economies agreed on dropping their tariff threats, in addition to working on a wider trade accord that drives global oil markets on Monday, Steven Mnuchin, U.S. Treasury Secretary, told Reuters.

Over the coming period, US-China trade dispute will de-escalate through negotiations, US bank Morgan Stanley noted. “Both sides plan to work on implementing agriculture and energy purchases and to continue to negotiate on manufacturing and service trade, bilateral investment and intellectual property protection in coming months,” it told the news agency.

By 07:52 am GMT, Nymex oil crude shed 0.03% to $71.64 pb, while Brent crude grew 0.41% to $78.92 bp.