Oil prices increased after the US stated that it plans to work with China on a wider agreement and put a possible trade conflict on hold.

Brent crude futures grew 35 cents to touch $78.86 a barrel, while US West Texas Intermediate (WTI) crude futures increased by 29 cents to reach $71.57 a barrel, reported Reuters.

The two countries had agreed to drop their threats to increase trade tariffs as they plan to work on a wider trade deal.

Petromatrix strategist Olivier Jakob was quoted by the news agency as saying: “That’s the main thing that’s driven oil and equity futures. It does for now, in terms of trade wars, put that risk away.”

Last week, Saudi Arabia and the UAE raised concerns about the oil market fluctuations and intend to meet Russia to discuss the issue.

“Without a further escalation in geopolitical risk, oil might be due a pullback.”

Jakob added: “It’s worth watching St Petersburg at the end of this week, that could provide the key input for the next few weeks.”

Saudi Arabian and UAE energy ministers Khalid al-Falih and Suhail al-Mazroui, respectively, will attend the St Petersburg Economic Forum this week, along with OPEC Secretary General Mohammad Barkindo.

BP’s group chief executive Bob Dudley told Reuters that US shale is expected to increase, which will lead to OPEC supplying more to the markets to cool prices after last week saw crude price grow above $80 a barrel.

Dudley expects oil prices to be in the range of $50 to $65 a barrel due to growing shale output and OPEC’s increased production to make up for the shortfall in supplies from Iran due to sanctions.

Futures brokerage AxiTrader chief market strategist Greg McKenna was quoted by the news agency as saying: “Without a further escalation in geopolitical risk, oil might be due a pullback.”