Oil prices rose on Wednesday following gains in the stock market, with investors hoping for a possible brexit agreement between the UK and the European Union, and signs that OPEC and its allies may further curb supply, Reuters reported.
But gains were limited as concerns about the global slowdown continued.
Brent crude oil futures, the global benchmark, rose 21 cents to $58.95 a barrel in 0310 GMT, about 0.3% higher than the closing price of the previous session. US West Texas Intermediate rose 16 cents, or 0.3 percent, to $52.97 a barrel.
Edward Moya, senior market analyst at OANDA in New York, said: “with the mitigation of the two major tail risks of global demand (Sino US trade war and brexit), oil began to show some bullish positions.”
“Although it seems impossible to reach a broader trade agreement in the short term, the risk of a trade war between China and the United States is gradually diminishing.”
The final talks between the UK and the EU to reach a brexit agreement ahead of this week’s EU leaders’ summit have lasted from midnight to Wednesday, but it is not clear whether the UK can avoid the planned brexit on October 31.
Analysts said any agreement to avoid a “hard” or non agreed brexit should boost economic growth, which in turn should drive up oil and prices.
OPEC Secretary General Mohammed bajindo said that OPEC and its allies will “do everything possible” to maintain the stability of the oil market beyond 2020.