Occidental (OXY) stock surged 5.01% in pre-market trading on Monday, as energy stocks rallied following a breakthrough in US-China trade negotiations. The jump comes amid a broader upswing in the energy sector, with several major players seeing significant gains.

The catalyst for this market optimism is the recent agreement between the United States and China to lower tariffs on each other's goods. China has committed to reducing its tariffs on US products to 10% from previous levels that had reached as high as 125%. In response, the US will cut its tariffs to 30% from 145%. This 90-day arrangement signals a potential thaw in the long-standing trade tensions between the world's two largest economies.

The energy sector appears to be a major beneficiary of this development. Along with Occidental's impressive pre-market gain, other energy giants also saw their stocks rise. Halliburton matched Occidental with a 4% increase, while Schlumberger and Chevron were up 3%, and ExxonMobil rose by 2%. This sector-wide rally reflects investor optimism about improved global trade conditions, which could potentially boost demand for oil and energy products.