Investing.com - Oil prices climbed on Tuesday boosted by hopes for a U.S.-China trade deal and optimism that the Trump administration could roll back some of the tariffs it has imposed on Chinese imports.
December U.S. crude futures rose 55 cents, or 0.9%, to $57.06 by 07:57 AM ET (12:57 GMT).
Brent crude futures for January were up 62 cents, or 1%, at $62.74 a barrel.
China is pushing U.S. President Donald Trump to remove more tariffs imposed in September as part of a Phase 1 deal, which would help to ease some of the economic fallout from the protracted trade dispute between the world's two largest oil consumers.
Both countries have slapped tariffs on each other's goods in a trade war that has dragged on for 16 months.
“If some of the existing tariffs were to be dismantled, that should restore some measure of global demand for oil as economic and trade conditions recover," said Han Tan, market analyst at FXTM.
OPEC Secretary-General Mohammad Barkindo said Tuesday the oil market outlook for 2020 may have upside potential, appearing to downplay any need for deeper production cuts.
Earlier on Tuesday the Organization of the Petroleum Exporting Countries released its 2019 World Oil Outlook, in which the group said it would supply a diminishing amount of oil in the next five years as output of U.S. shale and other rival sources expanded.
Production of crude oil and other liquids is expected to decline to 32.8 million barrels per day (bpd) by 2024, OPEC said.
Investors are also awaiting U.S. inventory data due later in the trading day.
The U.S. Federal Reserve's interest rate cut last week, recent weakness in the dollar and improved U.S. jobs growth in October also underpinned oil prices, analysts said.
"We believe that the strength in oil prices will be short-lived, given the scale of the surplus that is expected over the 1H20," ING analyst Warren Patterson said, referring to the first half of 2020.
"The risk to this view is if OPEC+ surprises the market in December by announcing even deeper than expected cuts for 2020."
OPEC, Russia and other producers, a group known as OPEC+, have implemented a deal to cut oil output by 1.2 million barrels per day from the start of this year.
Iranian Oil Minister Bijan Zanganeh on Monday said he expects further production cuts to be agreed at the next meeting of the group in December.
--Reuters contributed to this report