Investing.com - Oil prices rose on Monday, with Brent reaching their highest in more than one month, bolstered by optimism at the prospect of a U.S. - China trade deal and hopes for deeper output cuts by OPEC and its allies next month.
December U.S. crude futures reversed overnight losses, rising 66 cents to $56.84 a barrel 07:50 AM ET (12:50 GMT).
Brent crude futures for January were up 83 cents to $62.53 a barrel, also erasing earlier losses and reaching levels last seen on Sept. 27.
Hopes for a trade deal grew after Washington and Beijing said on Friday they had made progress towards resolving their protracted trade war, with U.S. officials indicating that a deal could be signed this month.
Adding to the optimism, Commerce Secretary Wilbur Ross said on Sunday licenses for U.S. companies to sell components to China's Huawei would come "very shortly".
Prices jumped about $2 a barrel on Friday as hopes for a trade breakthrough and an upbeat U.S. jobs report boosted the demand outlook.
Production cuts by the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers - a group known as OPEC+ - 1.2 million barrels per day are also underpinning prices.
But Russia again fell short of its obligations under the pact, energy ministry data showed on Saturday.
OPEC's output recovered in October from an eight-year low after a rapid rebound in Saudi Arabia's production from attacks on its oil infrastructure in September, offsetting losses in Ecuador and voluntary cuts under the pact.
On Monday, however, Iranian Oil Minister Bijan Zanganeh was quoted as saying that he expects further production cuts to be agreed at the next OPEC meeting in December.
Elsewhere, Saudi Aramco finally kick-started its initial public offering (IPO) on Sunday, but offered few details, especially as regards any implications for the kingdom's overall output. The IPO is coinciding with a regular review of the OPEC+ pact. Saudi's pursuit of the highest possible valuation for Aramco creates, wittingly or otherwise, an incentive for further cuts to sustain prices in a market that is at risk of tipping into oversupply next year.
Separately, Abu Dhabi's Supreme Petroleum Council on Monday approved the launch of a new pricing mechanism for Abu Dhabi National Oil Co.'s flagship Murban crude.
--Reuters contributed to this report