Oil&nbsp;prices kicked off the&nbsp;new&nbsp;year&nbsp;higher&nbsp;on Thursday as warming&nbsp;<a href="https://www.wionews.com/world/us-china-phase-one-trade-deal-to-be-signed-january-15-trump-271308">trade&nbsp;relations</a> between the United States and China eased demand concerns while rising&nbsp;tensions&nbsp;in the&nbsp;Middle&nbsp;East&nbsp;fuelled worries about supply.

Global benchmark <a href="https://www.wionews.com/business-economy/oil-prices-steady-on-track-for-biggest-yearly-rise-since-2016-271227">Brent crude</a> futures, rose 35 cents, or 0.5 per cent, to 66.35 a barrel by 0738 GMT, while US&nbsp;<a href="https://www.wionews.com/business-economy/global-markets-china-lifts-asian-shares-oil-up-on-drawdowns-mideast-tensions-270929">West Texas Intermediate</a> (WTI) crude was up 25 cents, or 0.4 per cent, at $61.31 per barrel.

<a href="https://www.wionews.com/opinions/wion-edit-oil-drives-the-global-economy-268116">Oil&nbsp;markets</a> were closed on Wednesday for&nbsp;New&nbsp;Year's Day.

Both benchmarks ended&nbsp;higher&nbsp;in 2019, posting their biggest annual gains since 2016, buoyed at the end of the&nbsp;year&nbsp;by a thaw in the prolonged&nbsp;trade&nbsp;dispute between the United States and China, the world's two largest economies and a deeper output cut pledged by the <a href="https://www.wionews.com/business-economy/oil-prices-inch-higher-amid-support-for-supply-cuts-lower-inventory-forecast-269909">Organization of Petroleum Exporting Countries</a> (OPEC) and its allies.

"Oil&nbsp;remains supported by the back-burner&nbsp;trade&nbsp;truce and the uptick in political unrest in Iraq," said <a href="https://www.wionews.com/business-economy/oil-prices-slip-as-weak-china-exports-highlights-trade-war-impact-267079">Stephen Innes</a>, chief Asia market strategist at AxiTrader.

The US&nbsp;military carried out airstrikes against Iran-backed Katib Hezbollah militia group over the weekend. Angry at the airstrikes, protesters stormed the US&nbsp;Embassy in Baghdad on Wednesday, although they withdrew after the United States deployed extra troops.

In 2020, Brent is forecast to average $63.07 a barrel, up from December's estimate of $62.50, while WTI is forecast to average $57.70 a barrel, up from December's estimate of $57.30, as the OPEC-led supply cuts and the expectations of a US-China&nbsp;trade&nbsp;deal boosted analysts' views on the prospects for the&nbsp;year, a Reuters poll showed.

US&nbsp;President Donald Trump said on Tuesday the US-China Phase One&nbsp;<a href="https://www.wionews.com/business-economy/oil-edges-up-on-trade-optimism-eyes-on-middle-east-tensions-270959">trade&nbsp;deal</a> would be signed on January&nbsp;15 at the White House.

January also marks the start of the deeper output cuts by OPEC and its partners, including Russia. OPEC and its allies have agreed to cut a further of 500,000 barrels per day (BPD) from January&nbsp;1, on top of their previous cut of 1.2 million BPD that started on January&nbsp;1&nbsp;a&nbsp;year&nbsp;ago.

A fall in US&nbsp;<a href="https://www.wionews.com/business-economy/oil-prices-inch-higher-amid-support-for-supply-cuts-lower-inventory-forecast-269909">crude inventories</a> last week also supported prices. US&nbsp;crude stocks fell 7.8 million barrels in the week ended December&nbsp;27, compared with analysts' expectations for a decrease of 3.2 million barrels, according to data from the <a href="https://www.wionews.com/business-economy/oil-falls-as-us-inventories-rise-but-demand-hopes-stem-bigger-drop-268973">American Petroleum Institute</a> (API) released on Tuesday.

Official data from the Energy Information Administration (EIA) is due on Friday as the release has been delayed by two days by the&nbsp;New&nbsp;Year's holiday.

"Traders will look towards Friday's EIA report for forwarding guidance on&nbsp;oil&nbsp;prices," said <a href="https://www.wionews.com/business-economy/oil-prices-steady-on-track-for-biggest-yearly-rise-since-2016-271227">Benjamin Lu</a>, an analyst at Singapore-based brokerage Phillip Futures.

Oil prices kicked off the new year higher on Thursday as warming trade relations between the United States and China eased demand concerns while rising tensions in the Middle East fuelled worries about supply.

Oil prices kicked off the new year higher on Thursday as warming trade relations between the United States and China eased demand concerns while rising tensions in the Middle East fuelled worries about supply. Global benchmark Brent crude futures, rose 35 cents, or 0.5 per cent, to 66.35 a barrel by 0738 GMT, while US West Texas Intermediate (WTI) crude was up 25 cents, or 0.4 per cent, at $61.31 per barrel. Oil markets were closed on Wednesday for New Year's Day. Both benchmarks ended higher in 2019, posting their biggest annual gains since 2016, buoyed at the end of the year by a thaw in the prolonged trade dispute between the United States and China, the world's two largest economies and a deeper output cut pledged by the Organization of Petroleum Exporting Countries (OPEC) and its allies. "Oil remains supported by the back-burner trade truce and the uptick in political unrest in Iraq," said Stephen Innes, chief Asia market strategist at AxiTrader. The US military carried out airstrikes against Iran-backed Katib Hezbollah militia group over the weekend. Angry at the airstrikes, protesters stormed the US Embassy in Baghdad on Wednesday, although they withdrew after the United States deployed extra troops. In 2020, Brent is forecast to average $63.07 a barrel, up from December's estimate of $62.50, while WTI is forecast to average $57.70 a barrel, up from December's estimate of $57.30, as the OPEC-led supply cuts and the expectations of a US-China trade deal boosted analysts' views on the prospects for the year, a Reuters poll showed. US President Donald Trump said on Tuesday the US-China Phase One trade deal would be signed on January 15 at the White House. January also marks the start of the deeper output cuts by OPEC and its partners, including Russia. OPEC and its allies have agreed to cut a further of 500,000 barrels per day (BPD) from January 1, on top of their previous cut of 1.2 million BPD that started on January 1 a year ago. A fall in US crude inventories last week also supported prices. US crude stocks fell 7.8 million barrels in the week ended December 27, compared with analysts' expectations for a decrease of 3.2 million barrels, according to data from the American Petroleum Institute (API) released on Tuesday. Official data from the Energy Information Administration (EIA) is due on Friday as the release has been delayed by two days by the New Year's holiday. "Traders will look towards Friday's EIA report for forwarding guidance on oil prices," said Benjamin Lu, an analyst at Singapore-based brokerage Phillip Futures.

Oil starts new year higher on trade optimism, Middle East in 'supply' tensions

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