A member of a drilling crew prepares to place a collar around drill pipe on an oil rig in the Permian Basin near Wink, Texas U.S. August 22, 2018.
According to latest OPEC forecasts, global oil demand will grow by 1.29mn bpd in 2019, the lowest rate of growth since 2013. The market also contended with the possibility that oil producers would not adhere strictly to cuts agreed to past year.
Providing global markets with price support are supply cuts led by the Organisation of the Petroleum Exporting Countries (OPEC) aimed at tightening the market.
CNBC said that while the U.S. President and Xi were still expected to meet, there was too much work to be done to flesh out a deal with China and, at the same time, prepare Trump for a high-stakes meeting with North Korea's Kim Jong Un.
"The market is being boosted by optimism over the higher-level trade talks between the United States and China that were completed on January 31".
The oil price came under pressure earlier in the day following weekly data from the US Energy Information Administration on Wednesday that showed an unwelcome increase in stocks of crude oil.
Countering the rising USA crude output and inventories are voluntary supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) aimed at tightening the market and propping up prices.
The oil price is showing a 20 percent gain so far this year.
Meanwhile, oil supply from the Organization of the Petroleum Exporting Countries fell in January by the largest amount in two years, a Reuters survey found, as Saudi Arabia and its Gulf allies over-delivered on the group's supply-cutting pact while Iran, Libya and Venezuela registered involuntary declines.
The producers known as OPEC+ started cutting production by 1.2 million barrels per day (bpd) from last month to avert a new supply glut, and OPEC has delivered nearly three quarters of its pledged cuts already, a Reuters survey showed last week. The kingdom pumped 10.643 million bpd in December.
"We believe that financial markets may be overestimating the risks of a global recession".
An oil pumpjack and a tank with the corporate logo of state oil company PDVSA are seen in an oil facility in Lagunillas, Venezuela January 29, 2019.
Following a US decision to impose sanctions on Venezuela's oil industry last week, Guaido and the Trump administration have sought to appoint a new board of directors for Citgo.