Crude oil prices slightly rose Tuesday after news U.S. and Chinese officials had discussed trade, while predictions for a weekly draw on U.S. crude stockpiles also lent support, Kallanish Energy reports.
Brent crude gained 60 cents, or 0.9%, to settle at $64.25 a barrel, while West Texas Intermediate crude gained 40 cents, or 0.7%, to settle at $58.41/Bbl.
Top U.S. and Chinese trade negotiators talked by telephone Tuesday, China’s commerce ministry said, as the two sides try to agree to the so-called Phase 1 deal in a trade war that’s been going on for 16 months.
In the last few months, markets have swung back and forth, rallying on headlines suggesting even minuscule progress, even as an agreement has still not been secured.
The discussions are taking place amid heightened tensions, with China saying it had summoned the U.S. ambassador Monday to protest against the passage in the U.S. Congress of the Hong Kong Human Rights and Democracy Act.
On the supply side, Opec meets in Vienna on Dec. 5, followed by talks with the broader Opec+ group, featuring 10 non-Opec producers led by Russia. Which have agreed to cut output nu 1.2 million barrels per day at least through next March.
The head of the International Energy Agency told Reuters Opec countries should make the right decision for a “very fragile” global economy.
Predicting strong oil production growth from non-Opec countries, especially the U.S., Brazil, Norway and Guyana, Fatih Birol said: “There will be lots of oil in the markets. I hope they will make the right decision for themselves and for the global economy.”
U.S. crude oil stockpiles were expected to have declined 400,000 barrels last week, according to a Reuters poll of analysts, ahead of reports from industry group the American Petroleum Institute (API), and the Energy Information Administration.
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