U.S. West Texas Intermediate (WTI) crude CLc1 futures rose $1.56 to $49.52 a barrel, a 3.3 percent gain. During the session, the contract touched $49.95, the highest since December 17.
Brent crude LCOc1 futures rose $1.47 to $58.53 a barrel, a 2.6 percent gain, as of 11:12 a.m. EST (1612 GMT).
"The trade situation is definitely bullish; you have a good demand construction if we can wrap up this trade deal", said Bob Yawger, director of futures at Mizuho in NY.
Some analysts believe that this round of talks are unlikely to yield any fruit and fear the talks may go down to the wire, which is essentially the March 1 truce deadline agreed upon by U.S. President Trump and China's President Xi Jinping on December 1.
Taking the middle ground was Amrita Sen, chief oil analyst at Energy Aspects, who conceded that any recovery in prices is on shaky ground, but that futures still have room to run: she told CNBC, "I think as long as the global economy isn't collapsing, we should be able to climb a little bit higher, but it is going to be very fragile because the biggest, biggest uncertainty right now is the trade war going on between the USA and China".
Some analysts warned, however, that the relationship between Washington and Beijing remained shaky and that tensions could soon flare anew.
Oil prices are expected to trade between the $60 and $70 per barrel range towards the second half of the year with the market expected to balance itself out, according to Arab Petroleum Investments Corporation (Apicorp). US crude CLc1 rose $1.26 to $49.22 a barrel.
Record high crude oil production has also pushed up United States inventories, which rose by almost 17 per cent in 2018 to their highest in well over a year, according to weekly data by the Energy Information Administration (EIA) on Friday.
With drilling activity still high, most analysts expect US oil production to rise further this year. "The market has jumped all over that", John Kilduff, founding partner at energy hedge fund Again Capital, told CNBC. This article is strictly for informational purposes only. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors.
More upbeat equity markets also offered support on the back of expectations that trade talks set for this week between the United States and China will ease a trade dispute. Over the course of his career, he has worked with some of the world's leading forex brokerages and research departments including Global Forex Trading, FX Solutions and Trading Advantage.
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