Oil prices pushed higher for a second day on Wednesday, rising by about 2 per cent, buoyed by hopes of progress of a US trade deal with China and India.
Brent crude futures rose 96 cents, or 1.6 per cent, to $62.28 a barrel as of 0924 GMT, while US West Texas Intermediate crude futures climbed 95 cents, or 1.7 per cent, to $58.19.
“Oil prices climbed after reports suggested the US and India are close to finalising a trade deal that could see India gradually cut imports of Russian crude, potentially lifting demand for other grades,” MUFG analyst Soojin Kim said.
US President Donald Trump said he spoke with Indian Prime Minister Narendra Modi on Tuesday, adding that Modi assured him India would be limiting its oil purchases from Russia.
Mint reported on Wednesday that the two countries were nearing a long-stalled trade agreement that would reduce US tariffs on Indian imports to 15-16 per cent from 50 per cent.
Investors are also closely watching the progress of US-China trade talks as officials from both countries are set to meet this week in Malaysia.
Trump said on Monday he expected to work out a fair trade deal with Chinese President Xi Jinping, whom he was due to meet in South Korea next week. On Tuesday, however, Trump again added to uncertainty over the meeting, saying it might not happen.
Meanwhile, supply concerns flared again on news that a summit between Trump and Russian President Vladimir Putin had been put on hold, and on disruption fears as Western governments pressured Asian buyers to reduce their purchases of Russian oil.
A potential drop in US oil inventories also boosted prices.
US crude, gasoline and distillate stocks fell last week, market sources said, citing American Petroleum Institute figures on Tuesday.
The US Department of Energy said on Tuesday it aims to buy 1 million barrels of crude oil for the Strategic Petroleum Reserve, as it seeks to take advantage of relatively low oil prices to help replenish its stockpile.
