2019.03.0405:32:00UTC+00Oil Prices Rally As US, China Near Trade Deal

Oil prices rose about 1 percent on Monday, with output cuts by Organization of the Petroleum Exporting Countries and growing optimism the United States and China will reach a trade agreement as soon as this month helping underpin investor sentiment.

Global benchmark Brent crude rallied 1.25 percent to 65.87 dollars a barrel, while U.S. West Texas Intermediate crude futures were up nearly 1 percent at $56.34 per barrel.

It appears that the U.S. and China are close to ending their bitter year-long trade dispute, with sort of agreement expected during a meeting between their two presidents later this month.

The Wall Street Journal reported Sunday that talks have progressed far enough that the two sides could reach a formal agreement at a potential meeting around March 27.

Investors also looked ahead to this week's session of China's ceremonial national legislature for announcements of possible economic stimulus to boost slowing growth.

According to a report released last week by the National Bureau of Statistics, activity in China's vast manufacturing sector continued to contract in February, and at a faster rate, underscoring concerns that the world's second-largest economy is losing momentum.