UPDATE 8-Oil rises more than 1% on U.S.-China hopes and improved outlook

* U.S. and China presidents in contact over potential deal
* U.S. jobs growth improves oil demand outlook
* Fed interest rate cut, weakened dollar supports oil

(Updates prices, adds commentary)
By Collin Eaton
HOUSTON, Nov 4 (Reuters) - Oil prices rose more than 1% on
Monday, buoyed by an improved outlook for crude demand as
better-than-expected U.S. jobs growth added to market hopes a
preliminary U.S.-China trade deal would be reached this month.
Brent crude futures for January LCOc1 rose 76 cents, or
1.2% to $62.45 a barrel by 11:31 a.m. CST (1731 GMT). December
U.S. crude futures CLc1 were up 83 cents, or 1.5%, at $57.03 a
barrel.
Brent traded near its highest in more than a month as market
optimism about progress in U.S.-China trade negotiations
propelled U.S. stock indexes to record highs, helping to elevate
oil. Chinese President Xi Jinping and U.S. President Donald Trump
have been in continuous touch through "various means," China
said on Monday, when asked when and where the two leaders might
meet to sign a trade deal. "Both sides (China and the United States) are talking up the
trade deal to a large degree. And you have the Federal Reserve
leaning into this better-looking economic situation, which lifts
all boats," said John Kilduff, a partner at Again Capital LLC.
On Friday, prices jumped by about $2 a barrel after U.S.
officials said a deal could be signed this month. Improved U.S. jobs growth numbers in October and the upward
revisions of the two previous months, reported on Friday, also
eased fears of a global economic slowdown that would slow crude
demand, oil-market analysts said.
Nonfarm payrolls increased by 128,000 jobs last month, U.S.
Labor Department data showed. Economists polled by Reuters had
forecast payrolls rising by 89,000 jobs in October. The economy
also created 95,000 more jobs in August and September than
previously estimated. "It's hard to make the argument that (the economy is) bad
when the jobs report is that good," said Robert Yawger, director
of energy futures at Mizuho in New York.
Federal Reserve's interest rate cut last week and recent
weakness in the U.S. dollar .DXY has also helped lift prices,
analysts said. Demand for crude oil, which is traded in U.S.
dollars, typically strengthens when the dollar weakens.
"Easing monetary policy, along with improved chances of a
U.S.-China trade deal, is pushing up oil markets. (Expectations
of) improved demand is lifting prices," said Phillip Streible,
senior market strategist at RJO Futures.
Hedge funds have started to rebuild long positions in crude
and fuels. On Monday, Iranian Oil Minister Bijan Zanganeh was quoted as
saying that he expects further production cuts to be agreed at
the next meeting of the Organization of the Petroleum Exporting
Countries (OPEC) in December. In an effort to prop up oil prices, OPEC, Russia and other
producers since January have reduced oil output by 1.2 million
barrels per day.
OPEC's output recovered in October from an eight-year low
after a rapid rebound in Saudi Arabia's production from attacks
on its oil infrastructure in September, offsetting losses in
Ecuador and voluntary cuts under the pact. OPEC/O