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Oil Extends Gains On Trade Talk Hopes

Oil prices rallied on Tuesday to extend recent gains as investors were encouraged by ongoing talks between the U.S. and China in Beijing in a bid to end their trade dispute. Output reductions by major oil producers also tightened markets.

Global benchmark Brent crude rallied 1.66 percent to $58.28 per barrel while
U.S. West Texas Intermediate (WTI) crude oil futures were up 1.55 percent at 49.27 per barrel.

U.S. Commerce Secretary Wilbur Ross said on Monday that there's a very good chance that Beijing and Washington could reach a trade deal that "we can live with".

Some analysts, however, remain skeptical over the possibility of a breakthrough.

S&P Global Ratings has slashed its average crude oil price assumptions for 2019 by $10 per barrel to $55 and $50 per barrel for Brent and WTI, respectively in response to a worsening picture for global demand.

Meanwhile, according to OPEC officials, Saudi Arabia plans to cut exports to around 7.1 million barrels a day by the end of January, down 800,000 barrels a day from November levels.

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