Oil Rises 1% on Signs OPEC Will Extend Supply Cuts
Oil prices rose on Wednesday, tracking gains in equities, as investors pinned hopes on a potential Brexit deal between Britain and the European Union and on signals from OPEC and its allies that further supply curbs could be possible.
Brent crude LCOc1, the global benchmark, rose 68 cents, or 1.16 percent, to settle at $59.42 a barrel. US crude CLc1 gained 55 cents, or 1.04 percent, to settle at $53.36.
"Oil is starting to see some bullish positions added on the easing of two big tail risks for global demand, the US-China trade war and Brexit," said Edward Moya, a senior market analyst at OANDA in New York.
"While a broader trade deal seems unlikely in the immediate future, the risks for the US-China trade war have been fading."
Providing more support, OPEC Secretary-General Mohammad Barkindo said the Organization of the Petroleum Exporting Countries and allied producers "will do whatever (is) in its power" to sustain oil market stability beyond 2020.
OPEC, Russia and other producers have cut oil output by 1.2 million barrels per day to support the market. Yet an expected rise in US crude inventories this week kept prices under pressure.
Still, concerns of a global economic slowdown due to a lingering trade war between the United States and China and swelling US inventories pressured prices.
That trade war will cut 2019 global growth to its slowest pace since the 2008-2009 financial crisis, the International Monetary Fund warned on Tuesday, but said output would rebound if their dueling tariffs were removed.