Oil held gains near $58 a barrel on signs a limited U.S.-China trade agreement is within reach and after analysts forecast the first drop in American crude inventories in five weeks.

Futures were steady in New York after rising 0.4% on Monday. China and the U.S. “reached consensus on properly resolving relevant issues” and agreed to stay in contact on the remaining points for a “phase one” trade deal during a phone call Tuesday morning Beijing time, the Xinhua news agency reported. U.S. stockpiles fell by 939,000 barrels last week, according to the median estimate in a Bloomberg survey before the official data due Wednesday.

West Texas Intermediate for January delivery added 4 cents to $58.05 a barrel on the New York Mercantile Exchange as of 10:10 a.m. in Singapore. The contract rose 24 cents to settle at $58.01 a barrel on Monday.

Brent for January settlement rose 6 cents to $63.71 a barrel on the London-based ICE Futures Europe Exchange after climbing 0.4% on Monday. The global benchmark traded at a $5.67 premium to WTI.

Source : Bloomberg