UPDATE 8-Oil rises on U.S.-China trade hopes, still below 3-month highs

* U.S., China agree to roll back some tariffs
* Analyst says market needs details on trade pact
* OPEC+ output curb extends Brent rally

(New throughout, updates prices, market activity and comments
to settlement)
By Jessica Resnick-Ault
NEW YORK, Dec 16 (Reuters) - Oil prices rose slightly Monday
on hopes energy demand will benefit from the trade deal between
the United States and China announced last week, but prices
remained below the previous session's three-month highs.
Brent crude oil futures LCOc1 settled up 12 cents, or
0.2%, at $65.34 a barrel, a session after hitting their highest
since Sept. 17 at $65.79.
West Texas Intermediate crude CLc1 settled up 14 cents, or
0.2%, at $60.21 a barrel.
On Friday, Washington and Beijing announced a "phase one"
agreement. U.S. officials said some tariffs would be reduced in
exchange for a big jump in Chinese purchases of American farm
products and other goods.
Progress on trade could boost oil demand, but the market is
still weighing the merits of the deal, said Phil Flynn, an
analyst at Price Futures Group in Chicago.
"The market is pausing to digest the U.S.-China trade deal,"
Flynn said. "We're trying to consolidate to see if we can hold
above $60 before we get higher."
The agreement averted $160 billion in additional U.S.
tariffs on Chinese goods that were to kick in over the weekend.
"What the market needs now... is clarity around exactly what
the deal entails," analysts from ING Economics said. "The longer
we have to wait for this detail, the more likely market
participants will start to question how good a deal it actually
is."
On Sunday, U.S. Trade Representative Robert Lighthizer said
the deal would nearly double U.S. exports to China over two
years and was "totally done" despite the need for translation
and textual revisions. China's State Council's customs tariff
commission said it had suspended additional tariffs on some U.S.
goods.
Oil prices drew some support on Monday from Chinese data
showing industrial output and retail sales growth accelerating
more than expected in November. But growth in China is expected to slow further next year,
with a likely government growth target of about 6% in 2020, down
from 6%-6.5% this year. Brent has rallied this year, supported by output curbs by
the Organization of the Petroleum Exporting Countries (OPEC) and
allies including Russia, which this month agreed to lower supply
by a further 500,000 barrels per day as of Jan. 1. OPEC/M
The decision, according to Saxo Bank commodity strategist
Ole Hansen, "helped trigger a 25% increase in the combined crude
long to 602,000 lots, the highest since May and the biggest
one-week accumulation since December 2016".