Oil rallies to 2019 highs on hopes for trade talks

Oil prices rallied in European trade to 2019 highs as optimism is rising for US-China trade talks, with both Chinese and US Presidents praising progress in negotiations. 

As of 09:22 GMT, US crude rose to $56.42 a barrel, with the highest since November 20 at $56.63, while Brent rose to $66.41 a barrel. 

US crude rose 2.4% on Friday, while Brent gained 2.7%, the fourth profit in a row. 

Oil marked a 6.5% profit last week, the second weekly profit in three, and the largest since June 2018. 

President Trump said he'd be happy to cancel tariffs if a deal is reached with China, adding his administration is nearer that goal than ever. 

Chinese President Xi Jinping also said the talks will carry on in Washington this week, hoping for an agreement soon before the truce deadline in early March. 

Russian energy minister Alexander Novak said the political crisis in Venezuela could weigh on the global oil market, but asserted no plans to amend the recent deal with OPEC to cut output by 1.2 million bpd. 

OPEC Secretary General Muhammad Barkindo asserted the importance of holding up the deal to achieve balance, while praising Saudi Arabia's efforts in particular to wean supplies. 

Saudi oil minister Khalid Al Falih said to Financial Times that Saudi Arabia plans to produce 9.8 million bpd in March, and for exports to fall to 6.9 million bpd. 

US Oil Rigs 

Baker Hughes reported an increase of 3 rigs last week to 857 rigs in the week ending February 15 away from ten-month lows as output steadied at a record 11.9 million bpd. 

The EIA reported another record output in shale output at 8.179 million bpd.