Oil rises on hopes for deeper OPEC output cuts, US-China trade talks

Oilprices climbed early on Friday, building on gains in the previous session after producer clubOPEChinted at makingdeepercutsin supply while optimism was revived overtalksbetween the United States andChinato end theirtradewar.

International benchmark Brent crude futures were at $59.26 a barrel by 0251 GMT, up 16 cents, or 0.3 per cent, from their previous settlement. Brent settled up 1.3 per centat $59.10 a barrel on Thursday.

US West Texas Intermediate (WTI) crudefutures rose 16 cents, also up 0.3 per cent, from their last close to $53.71 per barrel. In the previous session, WTI settled 1.8 per centhigher at $53.55 a barrel.

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On Thursday Mohammad Barkindo, Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), said all options were on the table, including adeepersupply cut to balanceoilmarkets. A decision would be taken at a December meeting between theOPECand its partners, he said.

OPEClowered its 2019 globaloildemand growth forecast to 0.98 million barrels per day (bpd), while leaving its 2020 demand growth estimate unchanged at 1.08 million bpd, according toOPEC's monthly report.

BeyondOPEC,tradetalksbetween the United States andChinaalso remained on the market's radar as the world's top two economies seek to resolve a more-than-a-year-longtraderow that has slowed global economic growth and curbed fuel consumption.

"Oilbought into the upbeat tone from the bilateraltalksas well, for better or for worse, and was also boosted by fighting talk on prices by theOPECsecretary-general," said Jeffrey Halley, a senior market analyst at OANDA in Singapore.

TopUSand Chinese negotiators wrapped up the first of two days of scheduledtradetalkson Thursday, with business groupsexpressing optimism that the two sides might be able to ease tensions and delay aUStariff hike set for next week.

"The United States is the largest global consumer ofoilwhileChina, the biggest driver of year-on-yearoildemand growth," said Stephen Innes, Asia Pacific market strategist at AxiTrader.

"The most significant sentiment driver hinges on the outcome of thetradetalkswhich, if (they) end on a positive note, could go along way to begin to repair the economic damage done ... these economic powerhouses would need moreoil," said Innes.

USPresident Donald Trump is set to meet Chinese Vice Premier Liu He at 1845 GMT on Friday, the White House said.