Oil prices improved on indications that the ongoing trade tensions between the US and China may ease ahead of scheduled talks next month.
Brent crude edged up 8 cents to $59.82 a barrel while US crude gained 9 cents to settle at $56.30 per barrel, reported Reuters.
Earlier, the US administration softened its position amid trade impasse agreeing to allow China’s Huawei Technologies to purchase components from domestic companies. The move is expected to ease tensions before next month’s trade talks as well as eased pressure from crude market.
VM Markets managing partner Stephen Innes was quoted by Reuters as saying: “The US-China trade spat has been at the centre of the oil market demise, which has sent the global economy to the brink of recession and negatively impacted oil demand forecasts.”
Growing expectations that major economies around the world will take steps to prevent economic slowdown also supported oil prices.
However, the report from the Organization of the Petroleum Exporting Countries (OPEC) that lowered global oil demand growth forecast dragged the crude market. The report cut the forecast for this year by 40,000 barrels per day (bpd) to 1.10 million bpd.
The oil market is also under pressure due to tensions in the Middle East between the US and Iran. The market also eyeing the weekly US inventory report with the official data scheduled to release later this week. However, a Reuters poll of seven analysts predicted that the crude oil stocks in the US dropped by 1.9 million barrels last week.