WASHINGTON (dpa-AFX) - Oil prices rallied on Tuesday to extend recent gains as investors were encouraged by ongoing talks between the U.S. and China in Beijing in a bid to end their trade dispute. Output reductions by major oil producers also tightened markets.
Global benchmark Brent crude rallied 1.66 percent to $58.28 per barrel while U.S. West Texas Intermediate (WTI) crude oil futures were up 1.55 percent at 49.27 per barrel.
U.S. Commerce Secretary Wilbur Ross said on Monday that there's a very good chance that Beijing and Washington could reach a trade deal that 'we can live with'.
Some analysts, however, remain skeptical over the possibility of a breakthrough.
S&P Global Ratings has slashed its average crude oil price assumptions for 2019 by $10 per barrel to $55 and $50 per barrel for Brent and WTI, respectively in response to a worsening picture for global demand.
Meanwhile, according to OPEC officials, Saudi Arabia plans to cut exports to around 7.1 million barrels a day by the end of January, down 800,000 barrels a day from November levels.
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