Oil rises above $62/bbl on hopes for U.S.-China trade deal - Reuters

Oil rises above $62/bbl on hopes for U.S.-China trade deal - Reuters:

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

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 55 cents, or 0.9%, to settle at $62.29 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 climbed 80 cents, or 1.4%, to $57.15.