Oil prices climbed by around 1 percent on Thursday, with Brent crude futures hitting a 2019-high, driven by Riyadh's pledge to further cut output and a possible end to US-China trade dispute.
International Brent crude oil futures were at $64.32 per barrel at 11.20 am Riyadh time, up 71 cents (+1.1 percent), after hitting a 2019-high of $64.43 per barrel earlier in the session.
US West Texas Intermediate (WTI) crude futures rose up 53 cents (1 percent) at $54.43 per barrel, from their last settlement.
Optimism that a trade deal could be reached between the world’s two largest economies - US and China - was boosted after the US President Donald Trump said talks were going “very well”.
Earlier this week, Saudi Energy Minister Khalid Al-Falih told Financial Times that the Kingdom would reduce production to nearly 9.8 million barrels per day (mbd) from above 11 mbd in November 2018.
However, the International Energy Agency on Wednesday said that global oil market will struggle this year to absorb fast-growing crude supply from outside the Organization of the Petroleum Exporting Countries (OPEC), despite with the group’s production cuts and US sanctions on Venezuela and Iran.
It expects oil demand to grow by 1.4 million barrels per day (mbd), while non-OPEC supply to increase by 1.8 mbd.
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