Oil price rises to $68.65 per barrel

Oil prices rose more than two per cent on Monday, supported by a rebound in the stock market as trade war between the United States and China eased.

Brent crude futures rose to settle at 68.65 dollars a barrel. Brent prices gained 2.3 per cent on the day, its largest daily percentage gain since March 21.

U.S. West Texas Intermediate (WTI) crude futures gained to settle at 63.42 dollars , a 2.2 per cent gain, its largest daily percentage rise since March 23.

“Once again we find the oil market being swept up in broader market sentiment,” said Matt Smith, director of commodity research at ClipperData.

“After Friday’s flight from risk, the positive mood in equities to start the week is encouraging a rebound in oil, with a weakening dollar providing a further shot in the arm.”

The U.S. stock market broadly rose more than one per cent as strength in technology shares and a softer stance by U.S. policymakers on China trade tariffs powered a rebound from last week’s selloff.

Crude futures have recently tracked with equities. Market participants also focused on an air strike on a Syrian air base over the weekend.

Syria and Russia blamed Israel for carrying out an attack on a Syrian air base near Homs on Monday which followed reports of a poison gas attack by President Bashar al-Assad’s forces on a rebel-held town. (Reuters/NAN)