Crude futures extended gains on Wednesday as Brent briefly topped $60 per barrel for the first time since December 17.
The rise in oil prices was fueled by hopes that the United States and China are close to reaching an agreement on trade and ending their trade war. The two countries concluded three-day negotiations earlier in the day and are reportedly drafting a joint statement on the outcome of the talks.
Earlier, US President Donald Trump praised the progress in talks with Beijing and US Commerce Secretary Wilbur Ross noted there is a “very good chance” the talks will end in a “reasonable settlement” that will work for both sides. Crude prices were also supported by OPEC’s output cuts as major producers including Russia and Saudi Arabia started to substantially capping their production.
Brent for March delivery climbed 1.84% to sell for $59.83 per barrel at 09:53 am GMT and West Texas Intermediate (WTI) jumped 2.09% to go for $50.84 per barrel at the same time.