Brent prices climb on U.S. output cuts, China trade deal hopes - Reuters

Brent prices climb on U.S. output cuts, China trade deal hopes - Reuters:

Brent crude oil prices rose on Wednesday, lifted by U.S. producers shutting most of their offshore output in the Gulf of Mexico ahead of Hurricane Laura and optimism over China-U.S. trade talks.

But gains were capped amid renewed concern over the coronavirus pandemic, which has squeezed fuel demand, after reports from Europe and Asia of patients being re-infected with COVID-19, raising concerns about future immunity.

Brent crude oil futures LCOc1 added 10 cents, or 0.2%, to $45.96 a barrel by 0642 GMT, while U.S. West Texas Intermediate crude CLc1 fell 5 cents, or 0.1%, to $43.30 a barrel. Both benchmarks settled at a five-month high on Tuesday.

“The hurricane impact is short-term bullish, but that could be short-lived if the damage to the Texas and Louisiana coasts cripples demand for an extended time,” said Edward Moya, senior market analyst at OANDA in New York.