Oil prices have edged up as OPEC’s outlook for oil demand in 2020 created hopes that supply cuts will be maintained.
Brent crude futures increased by 19 cents to $62.47 a barrel while West Texas Intermediate (WTI) crude rose by 21 cents to $56.98 a barrel, reported Reuters.
White House economic adviser Larry Kudlow revealed his optimism about the proposed meeting between the US and China to end their trade war.
The prices have risen after OPEC said that it expected demand for its oil to decrease next year.
Probis Group chief investment officer Jonathan Barratt was quoted by Reuters as saying: “There’s no reason to extend the cuts, we all know the economies are softening.
“If you push prices higher it is going to hurt everyone and even if it doesn’t, it’s only going to play into the US producers’ hands.”
OPEC+ members have cut output by 1.2Mbpd from January.
A deal between the producers has limited supplies until March 2020. They are set to meet in Vienna next month to review the policy.
OPEC noted that demand for its crude inventories would be approximately 29.58Mbpd next year, 1.12Mbpd less than in 2019, creating a 2020 surplus of 70,000bpd.
Meanwhile, the US Energy Information Administration (EIA) reported that crude production rose by 200,000bpd to 12.8Mbpd.