Oil prices have increased with support based on comments from China on trade deal progress with the US.

Brent crude futures LCOc1 rose 57 cents to $62.31 a barrel while US West Texas Intermediate (WTI) crude CLc1 futures increased to $56.83 a barrel, reported Reuters.

The Chinese commerce ministry was reported by Reuters as saying that the two nations ‘have agreed in the past two weeks to cancel tariffs in different phases’.

Petromatrix oil analyst Olivier Jakob told Reuters: “Today, we start with a different set of headlines that they came to some agreement on the framework. That is definitely what is supporting prices.”

According to the Energy Information Administration (EIA), US crude oil stockpiles rose 7.9Mbbls, while gasoline and distillate inventories were down 2.8Mbbls. A rise in the US crude is due to the output cut from refiners leading to a fall of exports.

AxiTraders market strategist Stephen Innes was quoted by Reuters as saying: “The inventory builds and a drop in exports is likely related to the COSCO sanctions.”

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By GlobalData

Meanwhile, a senior official of the Trump administration told Reuters that US President Donald Trump and China President Xi Jinping’s meeting would be postponed until December 2019.

OANDA brokerage analyst Craig Erlam said: “Doubts are not yet turning into full-blown concerns. If a date isn’t set in stone soon though, that may come.”