2019.10.2210:17:00UTC+00Oil Prices Rise On US-China Trade Deal Hopes

Oil prices rose on Tuesday as investors cheered signs of progress in U.S.-china trade talks, helping offset bearish forecasts of a buildup in U.S. crude stockpiles.

Benchmark Brent crude rose 0.6 percent to $59.30 a barrel while U.S. West Texas Intermediate crude futures were up half a percent at $53.76 per barrel.

U.S. President Donald Trump on Monday said that China had already begun promised purchases of farm goods and that the first part of a wider commitment was almost complete.

Trade Representative Robert Lighthizer said efforts to commit the agreement to paper before the Asia-Pacific Economic Cooperation summit in Chile next month are "on track" though some work remains to be done.

Trump's economics adviser Larry Kudlow indicated that tariffs scheduled for December could be cancelled if the talks go well.

On the Brexit front, investors await two crucial Brexit votes in parliament that will determine whether the United Kingdom can leave the European Union at the end of October.

Meanwhile, ahead of the API and EIA reports on inventories, a Reuters poll showed that U.S. crude stockpiles are expected to have increased for a sixth straight week, while distillates and gasoline stocks likely fell in the week to Oct. 18.