Mubasher: Oil prices rose on Friday as prospects of further supply cuts were raised on the back of the Organization of the Petroleum Exporting Countries’ (OPEC) oil demand outlook, according to Reuters.

In addition, hopes that the US and China could soon clinch a pact to put their trade war to an end arose after White House economic adviser Larry Kudlow said that both sides were “getting close” towards a deal, hailing discussions with Beijing as very constructive.

By 7:32 am GMT, US Nymex crude futures climbed by 0.35% to $56.97 per barrel (pb), while global benchmark Brent futures rose by 0.29% to $62.46 pb.

Sentiment brightened in the markets after OPEC said on Thursday it expected demand for its crude to decline next year, building the case for keeping an agreement with non-affiliated producers to reduce supply in place.

However, Probis Group chief investment officer Jonathan Barratt believed that this could backfire.

“There’s no reason to extend the cuts, we all know the economies are softening,” Barratt was quoted by Reuters.

“If you push prices higher it is going to hurt everyone and even if it doesn’t, it’s only going to play into the US producers’ hands,” he said.

In the US, production continued to rise, even with bigger-than-expected build-up of crude inventories.