Oil prices rose more than 1% on Tuesday on hopes of a trade deal between the US and China, as well as optimism that Washington may lift tariffs on some of China's exports to the US.
Brent crude rose $0.83, or 1.3%, to $62.96 a barrel. US crude oil futures rose 69 cents, or 1.2 percent, to close at $57.23 a barrel.
China is asking U.S. President trump to lift more tariffs imposed in September as part of the first phase of the U.S. - China trade agreement. Trade agreements will ease the economic impact of trade disputes between the world's two largest oil consumers.
"This development can promote the signing of the first stage trade agreement between China and the United States, which will further boost the willingness to risk. Therefore, the positive sentiment spilled from the stock market to the oil market, and until a long time next year, a major long-term agreement seems to be difficult to reach," said Jim ritterbusch, President of ritterbusch and associates in a report.
OPEC Secretary General Ali Barkin said Tuesday that the outlook for the oil market next year may have upside potential, which seems to play down the need for more drastic production cuts.
Iran's oil minister, shaghani, said he expected the December meeting of the organization of Petroleum Exporting Countries (OPEC) to agree to further production cuts.
The organization of Petroleum Exporting Countries (OPEC) said on Tuesday that although global economic growth has driven demand for energy, its oil supply will gradually decrease over the next five years as the production of us shale oil and other oil sources expands. OPEC's 2019 global oil outlook, released on Tuesday, forecasts that the organization's oil and other liquid energy production will decline to 32.8 million barrels per day by 2024.
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