The
'Phase One' agreement between the world's two largest economies
has been "absolutely completed," Larry Kudlow, a top White House
adviser, said on Monday, adding that U.S. exports to China will
double under the deal.
Brent crude <LCOc1>, the global benchmark, rose 17 cents to
$65.51 a barrel by 1104 GMT, while U.S. West Texas Intermediate
crude <CLc1> added 1 cent to $60.22.
"Christmas has definitely arrived early for oil producers," said
Craig Erlam, analyst at brokerage OANDA. "Brent could get closer
to $70 before the rally starts to run on fumes."
The prolonged trade dispute has been a dampener for oil demand
and weighed on prices. Banks including JP Morgan and Goldman
Sachs have revised up their 2020 price forecasts in the wake of
the improving trade outlook and a new OPEC-led agreement to curb
output.
"The risk-on tone is still noticeable," said Tamas Varga of oil
broker PVM. "The next event to look out for is the weekly U.S.
oil inventory statistics."
Supply reports from oil industry group the American Petroleum
Institute and the government's Energy Information Administration
are expected to show U.S. crude inventories probably fell last
week.
The first of the two, from the API, is scheduled for release at
4:30 p.m. EST (2130 GMT) on Tuesday. The government report
follows on Wednesday.
Also supporting prices, the Organization of the Petroleum of
Exporting Countries and allies such as Russia - a group known as
OPEC+ - are making a further oil supply cut of 500,000 barrels
per day from Jan. 1 to support the market.
This comes on top of the existing deal to trim supply by 1.2
million bpd that came into effect on Jan. 1 this year.
(Additional reporting by Jessica Jaganathan; editing by Kirsten
Donovan and Louise Heavens)
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