Oil climbed as the U.S. and China were said to be near a settlement of a trade dispute that threatened to erode energy demand in the world's largest economies.
Futures in New York rose 1.4 percent on Monday. American and Chinese negotiators are close to signing an accord that would lift tariffs and usher in new intellectual-property protections, according to people familiar with the talks. Meanwhile, OPEC crude exports fell by almost 700,000 barrels a day last month, tanker-tracking consultant Kpler said in a report.
Oil has rallied about 25 percent this year as the Organization of the Petroleum Exporting Countries and allies such as Russia restrained production. Adding to the momentum over the weekend, a pipeline closure threatened crude flows from Nigeria while American oil exploration was reported to have collapsed to the lowest level since May.
West Texas Intermediate for April delivery rose 79 cents to $56.59 a barrel at the close of trading on the New York Mercantile Exchange.
Brent for May settlement rose 60 cents to $65.67 on the London-based ICE Futures Europe exchange. The global benchmark crude's premium over WTI for the same month was at $8.70.
Source : Bloomberg