Mubasher: Oil prices rose on Tuesday as market participants were awaiting industry figures on US crude inventories due later in the day, while positive economic data and optimism over a trade deal between the US and China lent support, according to Reuters.

By 6:58 am GMT, US Nymex crude futures went up by 0.18% to $56.64 per barrel (pb), having advanced by 0.6% on Monday, while global benchmark Brent futures rose by 0.26% to $62.29 pb, after a 0.7% gain.

“This is mostly position lightening after an impressive run higher,” OANDA senior market analyst Jeffrey Halley was quoted by Reuters.

Oil has been supported by hopes for a trade pact between the world’s two biggest economies and oil consumers, raised by signals of more progress toward a breakthrough in the bilateral talks.

Chinese Foreign Ministry said that Chinese President Xi Jinping and his US counterpart Donald Trump have been in continuous touch through “various means” to bridge the gap created due to trade disputes.

Furthermore, US jobs growth in October and the upwardly revised figures for the two preceding months supported oil prices, analysts told the news agency.

On the supply front, the American Petroleum Institute (API) is due to release its weekly report pertaining US crude stockpiles, which were expected to have climbed by 2.7 million barrels as per shown by a preliminary analyst survey by Reuters.

Russia reduced its oil production to 11.23 million barrels per day (bpd) last month, from 11.25 million bpd in September.

However, it missed its output cut target under the deal with members of the Organization of the Petroleum Exporting Countries (OPEC), under which it was agreed to withhold 1.2 million bpd.

In addition, OPEC output edged up last October from an eight-year trough, as Saudi Arabia rapidly resumed its production which was hit by mid-September attacks, a Reuters survey found.

The Saudi output came more than offset shortages from Ecuador and voluntary curbs.