Oil jumped as China and the U.S. made progress in resolving the trade dispute that has weighed on global markets this year, offsetting signs that OPEC and its partners won’t make deeper cuts to supply.

Brent crude rose as much as 1.5% in London, reversing much of Wednesday’s 1.9% decline. China and the U.S. have agreed to proportionally roll back tariffson each other’s goods in phases, a Chinese Ministry of Commerce spokesman said. OPEC and its allies are more likely to stick to their current output targetswhen the group meets next month, according to delegates across the coalition.

Oil is still down about 17% from the peak reached in April on concern that a sluggish global economy and climbing supplies from the U.S. and elsewhere will soon tip the market into oversupply. U.S. crude inventories surged by 7.9 million barrels last week, almost four times more than the median estimate in a Bloomberg survey.

Brent for January settlement climbed as much as 92 cents to $62.66 a barrel on the ICE Futures Europe Exchange, and traded at $62.54 as of 10:29 a.m. London time. The contract dropped $1.22 to $61.74 on Wednesday. The global benchmark crude traded at a $5.41 premium to West Texas Intermediate.

WTI for December delivery gained 72 cents, or 1.3%, to $57.07 a barrel on the New York Mercantile Exchange. The contract fell 88 cents to close at $56.35 on Wednesday, snapping a 5.6% gain over three days.

Source : Bloomberg