Oil prices rose more than 1% on Monday, bouncing back from five-month lows after OPEC reaffirmed its forecast for stable global demand through the end of the year.

New York-traded West Texas Intermediate (WTI) crude for November delivery gained 73 cents, or 1.2%, reaching $59.63 per barrel by 12:50 US Eastern Time (16:50 GMT). On Friday, WTI had plunged by 4%, briefly touching $58.70, its lowest level since May.

In London, Brent crude for December delivery rose 68 cents, or 1.1%, to $63.41, recovering from last session’s 3.8% drop, which pushed it to a low of $62.52.

The rally followed the release of OPEC’s October oil demand forecast, which projected global growth of 1.3 million barrels per day in 2025, unchanged from last month’s estimate. The report helped stabilize sentiment following the previous week’s selloff.

Read more: OPEC+ oil strategy challenges Trump’s domestic drilling agenda

US-China trade tensions stir market volatility

The sharp decline in oil prices late last week was triggered by renewed fears of a trade dispute between the United States and China. Tensions escalated after US President Donald Trump threatened to impose 100% tariffs on Chinese imports in response to policy shifts by Beijing that could limit rare earth exports to the US.

By Sunday, Trump appeared to soften his stance, saying: “I think we’re going to be fine with China.” His comments helped ease concerns in the market, contributing to Monday’s rebound in crude oil prices.

However, per US Trade Representative Jamison Greer on Sunday, China postponed a proposed call with the United States following Washington's threats, citing that Washington found out about the delay via open sources rather than direct Chinese contact.

Greer later added that despite the increased tensions, a meeting between Trump and Chinese President Xi Jinping could still occur, noting that there remains "room for off-ramps" to restore stability in trade relations.

Read more: China slams US 'double standards' after Trump's 100% tariff threat