Oil prices rose by around 1 percent on Monday, lifted by optimism that talks could soon resolve the trade war between the United States and China, while supply cuts by major producers also supported the market.
Brent crude futures were at $57.61 per barrel up 55 cents, or 1 per cent, from their last close, while the U.S. West Texas Intermediate crude oil futures were at $48.49 per barrel, up 53 cents, or 1.1 per cent.
More fundamentally for oil markets, traders said crude future prices were being supported by supply cuts started late last year by a group of producers around the Middle East-dominated Organization of the Petroleum Exporting Countries, OPEC, as well as non-OPEC Russia.
OPEC oil supply fell in December by 460,000 barrels per day, to 32.68 million bpd, a Reuters survey found last week, led by cuts from top exporter Saudi Arabia, but not all factors are pointing to higher prices. Crude oil inventories rose by 7,000 barrels in the week ending December 28, to 441.42 million barrels.
Source: Oriental News