Oil prices rose on Monday after hitting five-month lows in the previous trading session, as investors focused on potential trade negotiations between the US and China that could ease trade tensions between the world's two largest oil-consuming nations.

West Texas Intermediate (WTI) crude futures for November delivery on the New York Mercantile Exchange gained $0.59, or 1%, to settle at $59.49 per barrel. Brent crude contracts settled up $0.59, or 0.94%, at $63.32 per barrel. On Friday, both contracts fell approximately 4%, with settlement prices reaching their lowest levels since May.

"Last week's price plunge was primarily driven by the Gaza ceasefire and renewed volatility in US-China trade ahead of the November 10 trade truce deadline," said Suvro Sarkar, energy analyst at DBS Bank.

He noted that the market selloff now appears to be constrained by both sides' willingness to negotiate, adding that the near-term outlook depends on the final outcome of trade negotiations.

On Friday, US President Trump stated he would impose 100% tariffs on Chinese goods exported to the United States, but on Sunday, Trump indicated he might not implement the previously threatened "significant tariff increases," while US Vice President JD Vance also signaled a willingness to engage in negotiations.

In March and April of this year, oil prices experienced significant declines during the height of trade tensions between the two countries.

In the Middle East, Palestinian militant group Hamas released the first batch of seven surviving Israeli hostages as part of the initial phase of a ceasefire agreement aimed at ending the Gaza conflict, which Trump helped facilitate.