Oil prices rose to their highest in weeks on Wednesday after U.S. President Donald Trump said a deal had been made with China.
The announcement raised hopes of easing trade tensions between the two largest economies.
Brent crude rose $1.15 to $68.02 a barrel. U.S. West Texas Intermediate crude gained $1.31 to $66.29 a barrel, its highest level in more than two months.
Trump said the agreement includes Chinese supplies of magnets and rare earth minerals and U.S. permission for Chinese students to attend American universities. He said the deal still needs final approval from him and Chinese President Xi Jinping.
The U.S. president also said he was less confident that Iran would agree to stop uranium enrichment in talks with Washington. Iran responded by threatening to strike U.S. bases in the Middle East if negotiations fail and conflict arises.
Tensions with Iran have kept its oil exports under pressure from sanctions. At the same time, the OPEC+ group plans to raise oil output by 411,000 barrels per day in July, continuing its gradual production increase.
Within the group, higher domestic demand in countries like Saudi Arabia could help balance the added supply and support prices.
In the U.S., consumer prices rose less than expected in May, leading markets to believe that the Federal Reserve could begin cutting interest rates by September. Lower rates can boost economic activity and oil demand.
Traders were also watching for the weekly U.S. oil inventory report. Market sources said crude stocks fell by 370,000 barrels last week, citing data from the American Petroleum Institute.
