Oil strengthens ahead of G20 meeting, but supply rise caps gains

29 Nov, 2018

Oil prices ticked higher on Thursday on optimism that trade talks at the G20 meeting could aid the global economy and improve the demand outlook, while an increase in U.S. crude inventories to their highest in a year curbed gains.

U.S. crude futures rose 0.8 percent, to $50.67 per barrel. International benchmark Brent crude rose 0.5 percent, to $59.03 a barrel, having dropped 2.4 percent on Wednesday to $58.76 a barrel.

"We have seen huge increases in supply and the demand picture is in question. However, we might see some movement on global trade issues at the G20 meeting which starts on Friday," said Michael McCarthy, chief strategist at CMC Markets and Stockbroking.

Investors are looking ahead to the meeting of leaders of the Group of 20 nations (G20), the world's biggest economies, on Nov. 30 and Dec. 1, with the U.S.-China trade war at the top of the agenda.

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