Brent crude <LCOc1> rose 15 cents, or 0.2%, to $62.55 a barrel
by 1300 GMT, while West Texas Intermediate crude <CLc1> was up
25 cents, or 0.4%, at $57.26.
Both benchmarks had fallen earlier in the session.
To support oil prices, OPEC and its allies are likely to extend
output cuts when they meet next month with non-OPEC producer
Russia, according to OPEC sources.
The sources told Reuters that formally announcing deeper cuts
looked unlikely for now although a message about better
compliance with existing curbs could be sent to the market.
Russian President Vladimir Putin said on Wednesday Russia and
OPEC had "a common goal" of keeping the oil market balanced and
predictable, and Moscow would continue cooperation under a
global deal cutting oil supply.
Amid rising tensions between the United States and China, U.S.
President Donald Trump is expected to sign two bills passed by
Congress intended to support protesters in Hong Kong, a move
likely to enrage China.
A Reuters report said completion of a "phase one" U.S.-China
trade deal could slide into next year.
"Under this scenario, both equities and oil are expected to come
under pressure. As talks hit a snag, an upside breakout from the
current trading range all of a sudden has become less imminent,"
Tamas Varga of oil brokerage PVM said.
However, the Chinese commerce ministry said that China would
strive to reach a "phase one" trade agreement with the United
States.
The Wall Street Journal also reported on Thursday, citing
unnamed sources, that China had invited top U.S. trade
negotiators for a new round of talks in Beijing.
Trade conflict, weak business investment and persistent
political uncertainty are weighing on the world economy, the
Organisation for Economic Cooperation and Development (OECD)
warned on Thursday, noting the global economy is growing at the
slowest pace since the financial crisis.
"In the short term, oil demand is directly tied to global GDP
growth and thus the ongoing uncertainty surrounding U.S.-China
trade talks will hamper global growth," Ehsan Khoman, head of
MENA research and strategy at MUFG, said.
(Reporting by Bozorgmehr Sharafedin in London, addiotioanl
reporting by Koustav Samanta in Singapore; Editing by Dale
Hudson and Elaine Hardcastle)
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