TOKYO, Dec 23 (Reuters) - Oil prices were mostly steady on
Monday after three weeks of gains amid optimism the United
States and China were close to signing a trade deal to end a
tariff war, with President Donald Trump saying an agreement
would be signed "very shortly".
Brent crude LCOc1 was down 4 cents at $66.10 a barrel by
0100 GMT. West Texas Intermediate CLc1 was also down 4 cents
at $60.40 a barrel.
A so-called phase one deal was announced earlier in December
as part of a bid to end the months-long tit-for-tat trade war
between the world's two largest economies, which has sent
shockwaves through markets and roiled global growth.
The United States is to agree to reduce some tariffs in
return for a big increase in purchases by Chinese importers of
American farm products, according to the deal that is due to be
signed in January. "We just achieved a breakthrough on the trade deal and we
will be signing it very shortly," Trump said at a Turning Point
USA event in Florida on Saturday.
The easing of tensions has improved business confidence and
boosted the outlook for economic growth and energy demand.
"Oil prices will continue to benefit from the positive
developments in the U.S.-China trade," said Stephen Innes,
chief Asia market strategist at AxiTrader.
"With a more constructive global macro outlook than at any
time in the last year, oil is well-supported by both fundamental
factors and sentiment now," he said.
U.S. drillers may be anticipating higher prices as well and
last week increased the number of their oil rigs by the most in
a week since February 2018.
Drillers added 18 oil rigs in the week to Dec. 20, bringing
the total to 685, the most since November, Baker Hughes, an
energy services company, said in its weekly report. RIG/U
U.S. economic growth nudged up in the third quarter, latest
data shows, and the economy appears to have maintained the
moderate pace of expansion as the year ended, supported by a
strong labour market.