The Yangshan Deep-Water Port in Hangzhou Bay south of Shanghai, China. Image Credit: NYT

Abu Dhabi: Signals on a possible US-China deal could see oil prices up going with markets reacting positively to the news.

Oil prices on Friday closed on a weekly high as reports emerged that tariffs put in place by both China and the US could be rolled back as part of a phase one trade deal, though some of that was later tempered when US president Donald Trump said he had not agreed to anything.

Markets on Friday saw Brent closing on $62.51 with West Texas Intermediate (WTI) at $57.24.

Speaking to reporters on Saturday, Trump again talked up a possible trade deal with China, stating that talks were going nicely and that he would only sign a great deal.

US crude inventories

Market demand and oversupply remains an issue for oil prices, with the US Energy Administration Information in its weekly petroleum report announcing a build-up of 7.9 million barrels for the week ending November 1.

Opec+ ministers are set to convene next month in Vienna, with some speculating that a new round of production cuts may be in store to keep prices stabilised and to keep the market balanced.

Opec+ have so far not given indications on which way they will go next month, with the body most likely keeping a close eye on any potential US-China trade deal that could emerge before the meeting takes place, which in turn will provide oil markets with some breathing space and upward prices.