Oil prices have gained on hopes that US President Donald Trump may provide an update on trade deal with China.

Brent crude futures were up 31 cents to $62.49 a barrel, while US West Texas Intermediate (WTI) crude was 23 cents at $57.09 a barrel, reported Reuters.

US President Donald Trump is set to speak to the Economic Club of New York on 12 November 2019. Over the weekend, Trump said that trade talks with China were progressing well. He also noted that reports of US intentions to lift tariffs were incorrect.

Reuters cited Energy Aspects Singapore oil analyst Virendra Chauhan as saying: “Positive commentary about a possible US and China interim trade deal certainly helps, but the fundamentals are supportive.”

“Six million barrels per day of refining capacity is due to return from turnarounds across November and December.”

Investment bank Goldman Sachs has cut its growth forecast in US shale output for 2020 by 100,000bpd to 600,000bpd over 2019.

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By GlobalData

Reuters quoted Goldman Sachs as saying: “We expect US oil growth to decelerate into 2020 as many companies look to balance growth with capex.”

Meanwhile, stocks at the delivery hub for WTI in Cushing, Oklahoma, fell by 1.2Mmbbls, noted intelligence firm Genscape.

In a new report, Fitch Solutions Macro Research analysts said that demand growth may rise in 2020.

Fitch Solutions added: “Our data show that 2019 will mark the nadir of oil demand growth over the next five years.

“We forecast demand to (grow) by around 0.5% this year, rising to 0.8% in 2020.”