* Trade talks continuing, China says
* OPEC should make right call for fragile world economy
-Birol
* U.S. crude stockpiles likely to have fallen last week
-poll
* Coming Up: API's weekly U.S. oil data at 4:30 p.m. ET/2130
GMT
(Updates with settlement prices)
By Stephanie Kelly
NEW YORK, Nov 26 (Reuters) - Oil prices rose on Tuesday
after news that U.S. and Chinese officials discussed trade,
while predictions for a weekly draw on U.S. crude stockpiles
lent some support as well.
Brent crude futures LCOc1 gained 62 cents to settle at
$64.27 a barrel, while West Texas Intermediate crude CLc1 rose
40 cents to settle at $58.41 a barrel.
The United States and China are close to agreement on the
first phase of a trade deal, U.S. President Donald Trump said on
Tuesday, after top negotiators from the two countries spoke by
telephone and agreed to keep working on remaining issues.
In the last few months, markets have swung back and forth,
rallying on headlines suggesting the barest progress, even as an
agreement has yet to be nailed down. The discussions are taking place amid heightened tensions,
with China saying it had summoned the U.S. ambassador on Monday
to protest against the passage in the U.S. Congress of the Hong
Kong Human Rights and Democracy Act.
"The main support for prices is the idea that if we get an
easing in the trade war, the fear of slowing conditions and the
impact on oil and fuel demand growth will be taken out of the
market," said Gene McGillian, vice president of market research
at Tradition Energy in Stamford, Connecticut.
On the supply side, the Organization of the Petroleum
Exporting Countries (OPEC) meets in Vienna on Dec. 5, followed
by talks with the broader OPEC+ group featuring other producers
that have agreed to cut output, including Russia.
The head of the International Energy Agency told Reuters
that OPEC countries should make the right decision for a "very
fragile" global economy. Predicting strong oil production growth from the non-OPEC
countries, especially the United States, Brazil, Norway and
Guyana, Fatih Birol said: "There will be lots of oil in the
markets. I hope they will make the right decision for themselves
and for the global economy."
U.S. crude stockpiles were expected to have declined 400,000
barrels last week, according to a Reuters poll of analysts,
ahead of reports from the American Petroleum Institute (API), an
industry group, on Tuesday, and the Energy Information
Administration (EIA) on Wednesday.
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CHART: U.S. oil neutral in $57.37-$58.24 range Brent oil neutral in $63.24-$64.14 range crude inventories, weekly changes since 2017 png https://tmsnrt.rs/2XlX17b
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