Oil rebounds to $62 on hopes for U.S.-China trade deal - Reuters

Oil rebounds to $62 on hopes for U.S.-China trade deal - Reuters:

Oil rose above $62 a barrel on Thursday after China hinted at progress toward a trade deal with the United States, raising hopes for an end to a long dispute that has weighed on economic growth and fuel demand.

China and the United States have agreed in the past two weeks to cancel tariffs in different phases, the Chinese commerce ministry said on Thursday without giving a timeline.

The trade dispute has prompted analysts to lower forecasts for oil demand and raised concerns that a supply glut could develop in 2020. Oil fell on Wednesday, partly because of worries that a U.S.-China trade deal might be delayed.

“Today we start with a different set of headlines that they came to some agreement on the framework,” said Olivier Jakob, oil analyst at Petromatrix. “That is definitely what is supporting prices.”

Brent crude LCOc1, the global benchmark, rose 57 cents to $62.31 by 0930 GMT after settling down $1.22 on Wednesday. West Texas Intermediate crude CLc1 climbed 48 cents to $56.83.