Palestine Economy Portal.

Oil prices rose on Tuesday after China signaled progress in trade talks with the United States, but gains were constrained by expectations of an increase in US crude inventories.

Brent crude was up 74 cents, or 1.3 percent, at $ 59.70 a barrel.

U.S. West Texas Intermediate (WTI) crude futures were up 85 cents, or 1.6 percent, at $ 54.16 a barrel.

Chinese Vice Foreign Minister Lu Yucheng said on Tuesday that China and the United States had made progress in their trade talks and that any problems could be solved as long as the two sides respected each other.

US President Donald Trump said on Monday efforts to end the trade war with China were proceeding well and negotiators from both countries were working on the text of the first phase deal to be signed by their leaders next month at their meeting at the APEC summit.

"Prudent commodity markets are cautiously optimistic amid signs that a trade agreement between the United States and China is imminent," ANZ wrote in a note.

Oil prices have also come under pressure from expectations of an increase in crude inventories in the United States, where inventories are expected to continue rising for the sixth consecutive week.

The IMF predicted last week that the effects of the US-China trade war around the world would slow global growth in 2019 to 3 percent, the weakest rate in a decade.

Goldman Sachs on Tuesday cut its forecast for global oil demand growth for 2020 to 1.3 million barrels per day from 1.4 million barrels earlier. It also slashed US shale oil production growth forecast for next year to 0.7 million bpd from a previous forecast of 1 million bpd.

Source: Reuters