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September 5, 2019 10:45 AM, EDT

Oil Rises Toward $57 as US and China Plan Talks

Oil Rig Andrey Rudakov/Bloomberg News

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Oil rose near $57 a barrel as China said it will resume talks with the U.S. to try and resolve a trade impasse that has weighed on global growth and fuel consumption.

Futures in New York added 1.2% after jumping 4.3% Sept. 4 in the biggest advance since July 10. Chinese trade negotiators will head to Washington in early October for talks, the nation’s Commerce Ministry said in a statement Sept. 5. Oil surged the previous day as the White House placed new sanctions on Iran, while Russia said it would keep to its OPEC+ output limits this month.

Oil also has been supported by more positive sentiment across financial markets, buoyed as Hong Kong’s leader sought to quell unrest in Asia’s key financial hub and as British lawmakers moved to block an imminent no-deal Brexit. Nonetheless, continued uncertainty on the outlook for the global economy is preventing prices from climbing much higher.

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“The economic pessimism abated somewhat yesterday,” said Eugen Weinberg, head of commodity research at Commerzbank AG in Frankfurt.

West Texas Intermediate for October delivery rose 67 cents to $56.93 a barrel on the New York Mercantile Exchange Sept. 5, having slipped as much as 51 cents earlier. The contract surged $2.32 on Sept. 4.

Brent for November settlement increased 69 cents to $61.39 a barrel on the ICE Futures Europe Exchange, after gaining 4.2% on Sept. 4. The global benchmark crude traded at a $4.60 premium to WTI for the same month.