Oil prices were higher following a report that OPEC and its allies would consider deeper production cuts when they meet in December.

The report, which appeared on Reuters, quoted sources close to the producer group and reflected rumors that had been in the oil market previously. The cuts are expected to be made in response to the outlook for weaker demand growth.

Oil had been slightly higher earlier after China signaled progress in trade talks with the United States, but gains were capped by bearish forecasts of a buildup in U.S. crude stockpiles.

Brent crude oil settled 1% higher at $59.59 a barrel, while U.S. West Texas Intermediate crude gained 1.6% to settle at $54.16 per barrel.

Source : Reuters