Oil held gains near US$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, Bloomberg reports.
Futures were steady in New York after rising by 0.4 percent on Monday.
American oil stockpiles fell by 939,000 barrels last week, according to a Bloomberg survey before the official data due Wednesday.
Crude has been rising since early October on the thaw in trade hostilities between the world’s two largest economies, although investors are becoming increasingly fatigued over how long the negotiations are taking.
The other key event that could give the oil market fresh direction is the OPEC+ meeting in Vienna next week where the grouping will decide on whether or not to deepen production cuts.
“The longer we drag on without a formal agreement between the U.S. and China, the more sentiment is likely to deteriorate,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney. “We’re coming close to a ceiling for both Brent and WTI, which suggests upside moves are limited.''
West Texas Intermediate for January delivery declined 3 US cents to US$57.98 a barrel on the New York Mercantile Exchange as of 11:28 a.m. in Singapore. The contract added 24 US cents to settle at US$58.01 a barrel on Monday.
Brent for January settlement fell 1 US cent to US$63.64 a barrel on the London-based ICE Futures Europe Exchange after climbing by 0.4 percent on Monday. The global benchmark traded at a US$5.66 premium to WTI.