* IMF says U.S.-China trade war will cut 2019 global growth
* EU sources say Brexit talks hit standstill
* Coming Up: API U.S. crude stocks data, 4:30 pm ET/2030 GMT
(Adds API report and oil price paring gains in post-settlement
trade)
By Collin Eaton
HOUSTON, Oct 16 (Reuters) - Oil rose on Wednesday, gaining
support due to signs that OPEC and allied producers will
continue to curb supplies in December, a weaker U.S. dollar and
as traders covered short positions ahead of an industry report
on U.S. crude inventories.
Brent crude LCOc1 , the global benchmark, rose 68 cents, or
1.16%, to settle at $59.42 a barrel. U.S. crude CLc1 gained 55
cents, or 1.04%, to settle at $53.36.
But oil prices pared gains in post-settlement trade after
industry data showed a larger-than-expected increase in U.S. oil
stocks. Brent edged lower to $59.15, and WTI to $53.07.
U.S. crude inventories in the week to Oct. 11 rose to 432.5
million barrels, according to the American Petroleum Institute's
weekly report ahead of government stocks data due on Thursday.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.6
million barrels, API said. EIA/S
Analysts had estimated U.S. crude inventories rose around
2.8 million barrels last week.
The Organization of the Petroleum Exporting Countries and
its allies meet on Dec. 5-6 in Vienna to review output policy.
Market participants believe the group known as OPEC+ could
decide to extend production cuts "and wait until world demand
catches up with the supply situation," said Andy Lipow,
president of Lipow Oil Associates in Houston.
OPEC Secretary-General Mohammad Barkindo has said deeper
output cuts are an option. On Tuesday, he said OPEC would do
what it could with allied producers to sustain oil market
stability beyond 2020. OPEC, Russia and other producers have agreed to cut oil
output by 1.2 million barrels per day until March 2020.
"You did see the OPEC secretary general say OPEC could act
to keep the market stable, and if we come back under pressure
again we might see that again," said Gene McGillian, vice
president of market research at Tradition Energy in Stamford,
Connecticut.
In early trading, prices had slipped because of concerns
about weaker demand for fuel due to slower economic growth and
forecasts of a further rise in U.S. crude inventories.
The dollar weakened after U.S. retail sales data
disappointed investors. Oil is traded in U.S.
dollars, so oil typically rises when the dollar falls.
"The dollar is getting whacked right now. It is pushing into
territory we haven't seen since a month ago," said Joshua
Graves, senior market strategist at RJO Futures. "If that
continues to sell off, that will continue to boost oil prices."
On Tuesday, the International Monetary Fund fed worries
about crude demand when it said the U.S.-China trade war would
cut 2019 global growth to its slowest since the 2008-2009
financial crisis.
"The market oversold yesterday on talk of a big build in
inventory," said Phil Flynn, senior energy analyst at Price
Futures Group in Chicago. "We're seeing some short covering
ahead of the (API) report tonight."
Optimism about an imminent Brexit deal had supported prices,
although this faded after EU sources said talks hit a
standstill. Analysts have said any agreement that
avoids a no-deal Brexit should boost economic growth and oil
demand.