Oil steadies on US-China trade hopes, supply cuts

Oil steadied above $65 a barrel on Tuesday, supported by hopes that the US-China trade deal will bolster oil demand in 2020 and the prospect of lower US 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 US exports to China will double under the deal.

Brent crude, the global benchmark, slipped 12 cents to $65.22 a barrel by 0945 GMT, while US West Texas Intermediate crude eased 14 cents to $60.07.

“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.”