Oil rises amid optimism of potential US-China deal

Lower economic growth typically means reduced demand for commodities such as oil.

By REUTERS
AFTER the signing of the Contract of the Century in the mid-’90s, oil wells received a new energy infusion. HEYDAR ALIYEV (photo credit: AZERTAC)
AFTER the signing of the Contract of the Century in the mid-’90s, oil wells received a new energy infusion. HEYDAR ALIYEV
(photo credit: AZERTAC)
Oil prices rose on Tuesday after China signaled progress in trade talks with the United States, but gains were capped by bearish forecasts of a buildup in US crude stockpiles.
Brent crude oil LCOc1 was up 30¢ at $59.26 a barrel by 1215 GMT, while US West Texas Intermediate crude CLc1 was 26¢ higher at $53.57 per barrel.
China and the United States have achieved some progress in their trade talks, Vice Foreign Minister Le Yucheng said on Tuesday, and any problems could be resolved as long as both sides respected each other.
The International Monetary Fund last week forecast that fallout from the US-China trade war and trade disputes across the world would slow global growth in 2019 to 3.0%, the weakest in a decade.
Lower economic growth typically means reduced demand for commodities such as oil.
Prices were also pressured by forecasts of a buildup in US crude stockpiles.