Oil costs surged on Thursday, buoyed by a potential breakthrough in the Sino-U.S. trade spat and OPEC-led efforts to constrain provide, though trading was quite as many markets were in holiday mode.
U.S. President Donald Trump stated Tuesday he and Chinese President Xi Jinping would have a signing ceremony for the so-called Phase 1 deal to end their trade conflict that was put together earlier this month.
The nearly 17-month trade battle hit global economic growth and demand for oil, leaving prices range-bound for most of the year.
Lower demand further rendered supply cuts by the OPEC+ less effective in strengthening the market.
The so-called OPEC+ coalition agreed in November to extend and deepen production cuts that would take up to 2.1 million barrels per day (bpd) of supply off the market, or virtually 2% of global demand.
U.S. producers, not a party to the OPEC+ deal, have been pumping record quantities of oil, particularly shale crude, to fill any supply gaps. Growth in production in the USA is forecast by many to slow.
Nonetheless, more supply is coming in 2020 with Saudi Arabia and Kuwait earlier this week agreeing to end a row over their Neutral Zone, which may supply up to 500,000 barrels per day of oil, i.e., around 0.5% of global demand.