Crude oil prices moved higher on Monday as worries about outlook for energy demand subsided a bit after positive comments from the U.S. and China raised optimism about a phase one trade deal between the two countries.

Expectations that oil output cuts will be extended until mid-2020 by OPEC and allies contributed as well to oil’s uptick. The OPEC meeting is scheduled to take place on December 5 in Vienna.

West Texas Intermediate crude oil futures for January ended up $0.24 at $58.01 a barrel.

Brent Crude oil futures settled higher by $0.25 at $63.64 a barrel.

On Friday, WTI crude oil futures for January ended down $0.81, or about 1.4%, at $57.77 a barrel.

There is renewed optimism about a U.S.-China trade agreement after a tabloid run by China’s ruling Communist Party discounted “negative” media reports and said the economic superpowers are “very close” to a phase one deal.

The state-backed Global Times said on Twitter that China also remains committed to continuing talks for a phase two or even a phase three deal with the United States.

China has offered to raise penalties on intellectual property violations in an attempt to hammer out a partial trade deal with the United States.

U.S. national security adviser Robert O’Brien said an initial trade deal was still possible by the end of the year.

U.S. President Donald Trump and Chinese President Xi Jinping have also recently made positive comments about a potential trade deal despite reports of complications arising that could delay the agreement until next year.

The material has been provided by InstaForex Company –