Oil prices finished on Friday at their highest level since last November as crude supplies from the Organization of Petroleum Exporting Countries (OPEC) sustained their decline.
In addition, progress in the trade talks between the US and China helped to allay fears about fuel demand.
By 8:25 pm GMT, US Nymex crude futures rose 2.32% to $55.67 per barrel (pb), while global benchmark Brent futures jumped 2.71% to $66.32 pb.
OPEC reported on Tuesday that its production was trimmed by 797,000 barrels per day (bpd) to average 30.81 million bpd in January, down from 31.6 million bpd in December last year. This came just below its goal of removing 812,000 bpd as per a supply-cut agreement.
The 14-member club along with another 10 allied producers agreed late last year to reduce supply by a total of 1.2 million bpd for the first half of this year.
Moreover, US and Chinese officials voiced their optimism about the trade negotiations held in Beijing this week. Trade talks are due to be resumed in Washington next week.
US President Donald Trump said that he will lift tariffs on Chinese goods, if a trade deal between Washington and Beijing is reached.
Oil markets found support in headlines of “productive” trade talks between the world’s two largest economies, soothing worries over a waning global fuel demand growth.
This article provided by NewsEdge.