Occidental Petroleum Corporation (OXY) saw its stock soar by 5.01% in pre-market trading on Monday, as investors reacted positively to a new trade agreement between the United States and China. The energy giant's shares were buoyed by a broader rally in the oil and commodities markets, which has particularly benefited companies in the energy sector.

The surge comes on the heels of a weekend of productive trade talks between the US and China, resulting in an agreement to mutually reduce tariffs. China has committed to lowering its tariffs on US goods to 10% from previous levels that had reached as high as 125%, while the US will reduce its tariffs to 30% from 145%. This de-escalation in trade tensions has sparked optimism across various sectors, with energy stocks experiencing significant gains.

Occidental's pre-market rally is part of a broader trend in the energy sector, with other major players also seeing substantial increases. Halliburton matched Occidental's 4% gain, while Schlumberger and Chevron saw 3% increases, and Exxon Mobil rose by 2%. The positive sentiment in the energy sector contrasts sharply with the performance of gold stocks, which experienced declines as investors shifted away from safe-haven assets in light of the improved trade outlook.