UPDATE 10-Oil rises to 2-mth high on hopes of longer OPEC cuts, U.S.-China trade deal

* OPEC+ likely to extend oil supply cuts until June -
sources
* OPEC's Dec. 5 meeting, unrest in Iran and Iraq in focus
* China says it will strive to reach trade deal with U.S.
* U.S. passes Hong Kong rights bills, adding to tension with
China

(Adds closing prices)
By Devika Krishna Kumar
NEW YORK, Nov 21 (Reuters) - Oil prices rose more than 2% on
Thursday to the highest in nearly two months following a Reuters
report that OPEC and its allies are likely to extend output cuts
until mid-2020 and fresh signs that China had invited U.S. trade
negotiators for a new round of talks.
Brent crude LCOc1 ended the session up $1.57, or 2.5%, at
$63.97 a barrel, while West Texas Intermediate (WTI) crude
CLc1 settled up $1.57, or 2.8%, to $58.58.
WTI touched a session high of $58.67 a barrel, the highest
since Sept. 23 and Brent climbed to a high of $64.03, the
highest since Sept. 24.
To support oil prices, the Organization of the Petroleum
Exporting Countries and its allies are likely to extend output
cuts to June when they meet next month, according to OPEC
sources. OPEC meets on Dec. 5 at its headquarters in Vienna, followed
by talks with a group of other oil producers, lead by Russia,
known as OPEC+. The current supply cuts deal runs through to
March 2020.
The sources told Reuters that formally announcing deeper
cuts looked unlikely for now although a message about better
compliance with existing curbs could be sent to the market.
Russian President Vladimir Putin said on Wednesday Russia
and OPEC had "a common goal" of keeping the oil market balanced
and predictable, and Moscow would continue cooperation under a
global deal cutting oil supply. "I think the market is pretty much resigned to the fact that
economic growth is slowing as is the rate of increases in oil
demand where forecasts having been revised lower continually...
a lot of that bearishness has been priced in, so that the
upcoming OPEC meeting and unrest in Iran and Iraq is becoming
the focus," said Andrew Lipow, president of Lipow Oil Associates
in Houston.
"The market is well supplied and in my opinion, that will
likely force OPEC and non-OPEC producers' hand to extend their
cuts through 2020."
Unrest erupted on Nov. 15 in Iran after the government
announced gasoline price hikes of at least 50%, and quickly
turned political with protesters demanding top officials to step
down.
In Iraq on Thursday, seven people were killed when security
forces shot live fire and tear gas canisters at demonstrators in
Baghdad, security and medical sources said, in renewed deadly
violence as authorities seek to crush anti-government protests.
Also supportive for the markets, the Chinese commerce
ministry said China will strive to reach an initial trade
agreement with the United States as both sides keep
communication channels open.
A Reuters report on Wednesday said completion of a "phase
one" U.S.-China trade deal could slide into next year.

Amid the long-drawn trade war between the United States and
China, U.S. President Donald Trump is expected to sign two bills
passed by Congress intended to support protesters in Hong Kong,
a move likely to anger China.
Hong Kong has seen increasingly violent protests against
Chinese rule for several months and the passage of the bills
could potentially undermine efforts to secure a trade deal.
"Positive speak from China is not offsetting expectations
that President Trump will sign a bill supporting Hong Kong
protesters," said Edward Moya, senior market analyst at OANDA in
New York.
"The timing of phase one deal is unclear, but markets are
starting to get nervous we could see a repeat of the collapse in
talks that took place in May."
The Wall Street Journal also reported on Thursday that China
had invited top U.S. trade negotiators for a new round of talks
in Beijing, citing unnamed sources.
A report in the South China Morning Post said the United
States could delay tariffs on Chinese imports even if a deal was
not reached by Dec. 15. (https:// BNP Paribas raised its oil price forecasts for this year and
2020 from its previous estimates, citing increased refinery
throughputs due to upcoming new regulation on shipping fuels.