Oil prices edge higher on potential Brexit deal; OPEC signals of possible cuts

* Britain, EU make headway on possible Brexit deal
* OPEC, allies to seek market stability beyond 2020
* Coming Up: API inventory data at 2030 GMT

By Jessica Jaganathan
SINGAPORE, Oct 16 (Reuters) - Oil prices rose on Wednesday,
tracking gains in equities, as investors pinned hopes on a
potential Brexit deal between Britain and the European Union and
on signals from OPEC and its allies that further supply curbs
could be possible.
But gains were limited on lingering concerns of a global
economic slowdown.
Global benchmark Brent crude oil futures LCOc1 had risen
11 cents to $58.85 by 0103 GMT, up about 0.2% from the previous
day's close. U.S. West Texas Intermediate (WTI) crude CLc1 had
gained 10 cents or 0.2% to $52.91 a barrel.
"Oil is starting to see some bullish positions added on the
easing of two big tail risks for global demand, the U.S.-China
trade war and Brexit," said Edward Moya, a senior market analyst
at OANDA in New York.
"While a broader trade deal seems unlikely in the immediate
future, the risks for the U.S.-China trade war have been
fading."
Last-ditch talks between Britain and the European Union to
get a Brexit deal ahead of a summit of the bloc's leaders this
week ran past midnight to Wednesday, but it was still unclear if
London could avoid postponing its departure, due on Oct. 31.
Analysts have said any deal that avoids a "hard" or no-deal
Brexit should boost economic growth and in turn oil growth and
prices.
Providing more support, OPEC Secretary-General Mohammad
Barkindo said the Organization of the Petroleum Exporting
Countries and allied producers "will do whatever (is) in its
power" to sustain oil market stability beyond 2020. OPEC, Russia and other producers have cut oil output by 1.2
million barrels per day to support the market. Yet an expected
rise in U.S. crude inventories this week kept prices under
pressure. EIA/S
Still, concerns of a global economic slowdown due to a
lingering trade war between the United States and China and
swelling U.S. inventories pressured prices.
U.S. crude stocks probably grew for the fifth straight week,
a preliminary Reuters poll showed.
U.S. oil inventory reports are due out from industry group
the American Petroleum Institute on Wednesday and the U.S.
Energy Information Administration on Thursday. The reports have
been delayed one day because of a U.S. government holiday.