WASHINGTON (dpa-AFX) - Oil prices rose sharply on Monday as soothing comments from both the U.S. and Chinese presidents praising progress in trade talks helped spur hopes for a resolution to the U.S.-China trade conflict.
Brent crude futures rose nearly 2 percent to $54.26 a barrel, but remained on track to post their first yearly drop in three years on concerns over supply glut.
U.S. West Texas Intermediate (WTI) crude futures were at $46.08 a barrel, up 75 cents or 1.68 percent from their previous close.
Brent crude prices fell almost 19 percent in 2018 while WTI prices dropped about 24 percent.
Investors are pinning hopes for progress in trade talks between China and the United States after U.S. President Donald Trump on Saturday said that he had a 'long and very good call' with Chinese President Xi Jinping and that a comprehensive trade deal between the United States and China is moving along very well, raising hopes for a breakthrough in the trade dispute.
Chinese state media also cited President Xi Jinping as saying that he believed both sides wanted 'stable progress.'
Traders expect the downward pressure on oil prices to taper off gradually as an agreement to cut oil production reached between OPEC and its allies takes effect this week.
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