Oil prices registered their highest settlement in about two months on Thursday, finding support from a report that the Organization of the Petroleum Exporting Countries and its allies are likely to extend production cuts as well as renewed optimism around U.S.-China trade talks.

OPEC and its allies, including Russia, are likely to agree to extend crude production cuts until mid-2020 when they meet next month, Reuters reported Thursday, citing OPEC sources. An existing agreement on output curbs runs through March 2020. OPEC and its allies will meet on Dec. 5 and Dec. 6 in Vienna.

In a note Thursday, Raffi Boyadjian, senior investment analyst at XM, said the oil-producer alliance is expected to agree to extend the current output cap beyond March 2020, and oil prices “got a further boost after Russia signaled it will continue to cooperate with OPEC to restrict output.”

West Texas Intermediate crude for January delivery rose $1.57, or 2.8%, to settle at $58.58 a barrel on the New York Mercantile Exchange, while January Brent crude, the global benchmark, added up $1.57, or 2.5%, at $63.97 a barrel on ICE Futures Europe.

Source : Market Watch