Oil rises, set for weekly gain amid hopes for end to U.S.-China trade war

Oil prices edged higher on Friday, with crude benchmarks poised for multi-week gains amid a sharp drawdown in U.S. crude inventories, while trade tensions eased after Washington and Beijing agreed to hold high-level talks next month, Trend reports citing Reuters.

Brent crude was up 17 cents, or 0.3%, at $61.12 a barrel by 0408 GMT, while U.S. West Texas Intermediate (WTI) crude was up 16 cents, or 0.3%, at $56.46 a barrel.

Brent is set to mark its fourth weekly gain, while U.S. crude is headed for a second weekly rise.

Beijing and Washington on Thursday agreed to hold high-level talks in early October in Washington, cheering investors hoping for an end to the trade war between the world’s two biggest economies that has brought tit-for-tat tariff hikes, chipping away at economic growth.

The prolonged dispute had a dampening effect on oil prices, although they have risen over the year, helped by production cuts led by the Organization of the Petroleum Exporting Countries and its allies, including Russia, to drain inventories.