Oil rises on optimism about US-China trade deal

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Oil rises on optimism about US-China trade deal
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US crude inventories rose by 7.9-million barrels but the Opec secretary-general sees a brighter market outlook for 2020

London — Oil rose above $62 a barrel on Thursday after China hinted at progress towards a trade deal with the US, raising hopes for an end to a long dispute that has weighed on economic growth and fuel demand.

The trade dispute has prompted analysts to lower forecasts for oil demand and raised concerns that a supply glut could develop in 2020. Oil fell on Wednesday, partly because of worries that a US-China trade deal might be delayed. Brent crude, the global benchmark, rose 57c to $62.31 by 9.30am GMT after settling down $1.22 on Wednesday. West Texas Intermediate crude climbed 48c to $56.83.

Brent has rallied 15% in 2019, supported by a deal between oil cartel Opec and allies such as Russia to limit supplies until March 2020. The producers meet on December 5-6 in Vienna to review the policy.

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