UPDATE 7-Oil climbs on U.S.-China trade talks optimism

* China-U.S. trade talks turn positive
* OPEC meets next week, production cut rollover expected
* Barclays sees Brent trading near $60 for two years

(Updates to settlement)
By Devika Krishna Kumar
NEW YORK, Nov 25 (Reuters) - Oil prices edged higher on
Monday as positive comments from the United States and China
rekindled hopes in global markets that the world's two largest
economies could soon sign an interim deal to end their trade
war.
Brent crude futures LCOc1 ended the session up 26 cents,
or 0.4% at $63.65 a barrel while West Texas Intermediate (WTI)
crude CLc1 settled up 24 cents, or 0.4% at $58.01.
"Oil prices are surprisingly steady on Monday, despite the
normal sensitivity to trade headlines," Craig Erlam, senior
market analyst at OANDA said.
"Momentum is clearly lacking in the more recent rallies in
crude, although the strong bounce late last week may give bulls
some cause for optimism."
Prices were also supported by strong equity markets as the
S&P 500 and the Nasdaq indexes climbed to new record highs on
Monday. Analysts at Barclays said they expect Brent to oscillate
around $60 a barrel for the next two years.
U.S. national security adviser Robert O'Brien on Saturday
said that an initial trade agreement with China was still
possible by the end of the year. Chinese daily Global Times on Monday cited experts close to
the Chinese government as saying that China and the United
States have reached a broad consensus on the first phase of the
trade deal, though some differences remain over the removal of
tariffs.
U.S. President Donald Trump and Chinese counterpart Xi
Jinping on Friday expressed a desire to sign an initial trade
deal and defuse a 16-month tariff war that has lowered global
growth.
However, concern remains that events in Hong Kong, riven by
months of anti-government unrest, could undermine progress in
trade talk.
O'Brien warned on Saturday that Washington would not turn a
blind eye to what happens in Hong Kong, where demonstrators were
angry at what they see as an erosion of freedoms.
The Organization of the Petroleum Exporting Countries (OPEC)
meets on Dec. 5 at its headquarters in Vienna, followed by talks
with other oil producers in the OPEC+ group, led by Russia.
The group is widely expected to extend its supply cut to
mid-2020. A group of officials called the Joint Technical Committee
will meet on Dec. 4, a day later than first scheduled, an OPEC
source said on Monday. Unrest in Iran and Iraq have also supported oil prices,
dealers said. Security forces opened fire on protesters in
Baghdad and several cities in southern Iraq on Sunday, killing
at least nine people and wounding dozens of others. Thousands of supporters of Iran's clerical establishment
rallied in Tehran on Monday, accusing the United States and
Israel of instigating the most violent anti-government protests
for a over a decade in the Islamic Republic.