Oil edges further above $65 a barrel on US, China trade deal, supply cuts

Oil edged further above $65 a barrel on Tuesday, supported by hopes that the U.S.-China trade deal will bolster oil demand in 2020 and the prospect of lower U.S. crude supplies.

The ‘Phase One’ agreement between the world’s two largest economies has been “absolutely completed,” Larry Kudlow, a top White House adviser, said on Monday, adding that U.S. exports to China will double under the deal.

Brent crude, the global benchmark, rose 29 cents to $65.63 a barrel by 1305 GMT, while U.S. West Texas Intermediate crude added 18 cents to $60.39.

“Christmas has definitely arrived early for oil producers,” said Craig Erlam, analyst at brokerage OANDA. “Brent could get closer to $70 before the rally starts to run on fumes.”