Oil prices surge 5% ahead of OPEC meeting

Oil prices soared by five percent on Monday after the United States and China consented to a 90-day truce in their trade war, and ahead of an expected output cut at this week's OPEC meeting.

International benchmark Brent crude was up $3, or 5.1 percent, to $62.49 a barrel as of 8 am Riyadh time, while the US West Texas Intermediate (WTI) crude gained $2.7, or 5.4 percent, to reach $53.67 a barrel.

China and the United States agreed at a G20 meeting in Argentina last week to put on hold any additional trade tariffs for at least 90 days while they hold talks to resolve existing disputes.

Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC)  along with non-OPEC member Russia is expected to announce production cuts to support oil prices at their Dec.6 meeting.

US crude output has reached an unprecedented level of more than 11.5 million barrels per day, with drilling activity continuing to remain high.