Oil prices surged by more than three percent on Monday following an agreement between China and the United States to suspend broad mutual tariffs and ease ongoing trade tensions between the two global economic giants.

West Texas Intermediate rose 3.6 percent to $63.24 per barrel, while Brent increased 3.4 percent to $66.11.

The announcement raised hopes that easing trade tensions would help support global economic growth and drive up demand for oil.