WASHINGTON (dpa-AFX) - Crude oil prices moved higher on Monday, amid growing optimism about a trade deal between the U.S. and China this month, and on OPEC-led output cuts.
West Texas Intermediate Crude oil futures for April ended up $0.79, or 1.4%, at $56.59 a barrel.
On Friday, crude oil futures settled at $55.80 a barrel, losing $1.42, or 2.5% for the session.
Crude oil prices have moved up significantly since the beginning of this year, riding on supply cuts by OPEC and some non-OPEC members. According to a survey from Reuters, supply from OPEC dropped to a four-year low last month, thanks largely to a larger than originally agreet output reduction by Saudi Arabia.
Data released by Energy Information Administration last week said crude oil inventories in the U.S. dropped for the first time in six weeks, falling by more than thrice the expected level, to 8.65 million barrels in the week to February 22.
According to media reports, the U.S. and China are close to ending their bitter year-long trade dispute, with sort of agreement expected during a meeting between their two presidents later this month.
The Wall Street Journal reported Sunday that talks have progressed far enough that the two sides could reach a formal agreement at a potential meeting around March 27.
It is reported that China is offering to lower tariffs and other restrictions on American products, while the U.S. is considering removing most, if not all, sanctions levied against Chinese products since last year.
Reports indicate a likely meeting between President Donald Trump and Chinese President Xi Jinping later this month.
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