Crude oil rose Monday after posting three straight weeks of gains, nudged higher by positive comments from the U.S. and China rekindled hopes in global markets the world’s two largest economies could soon sign an interim deal to end their trade war.
Brent crude futures gained 25 cents to settle at $63.64 a barrel, while West Texas Intermediate crude gained 24 cents to settle at $58.01/Bbl, Kallanish Energy reports.
Analysts at Barclays said they expect Brent to revolve around $60/Bbl for the next two years.
U.S. national security adviser Robert O’Brien Saturday said an initial trade agreement with China was still possible by the end of the year.
Chinese daily newspaper Global Times Monday cited experts close to the Chinese government as saying China and the U.S. have reached a broad consensus on the first phase of the trade deal, though some differences remain over the removal of tariffs.
U.S. President Trump and Chinese counterpart Xi Jinping last Friday expressed a desire to sign an initial trade deal and defuse a 16-month tariff war that has lowered global growth.
However, concern remains that events in Hong Kong, riven by months of anti-government unrest, could undermine progress in trade talk.
O’Brien warned Saturday Washington would not turn a blind eye to what happens in Hong Kong, where demonstrators were angry at what they see as an erosion of freedoms.
Opec meets Dec. 5 at its headquarters in Vienna, followed by talks with non-Opec producers led by Russia which, combined, comprise Opec+. The larger group is widely expected to extend its 1.2 million barrels per day supply cut from March to mid-2020.
Unrest in Iran and Iraq have also supported oil prices. Security forces opened fire on protesters in Baghdad and several cities in southern Iraq Sunday, killing at least nine people and wounding dozens of others.
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