UPDATE 10-Oil gains 1% as China pushes Trump for more tariff rollbacks

* Prices supported by trade hopes
* OPEC's Barkindo flags 'upside potential' for oil
* U.S. inventory data due later on Tuesday
* Asia's oil demand growth to rebound in 2020 -FGE

(Adds API data)
By Stephanie Kelly
NEW YORK, Nov 5 (Reuters) - Oil prices rose more than 1% on
Tuesday on hopes for a U.S.-China trade agreement and optimism
that Washington could roll back some tariffs on Chinese imports.
Brent crude LCOc1 futures rose 83 cents, or 1.3%, to
settle at $62.96 a barrel. U.S. West Texas Intermediate (WTI)
crude CLc1 futures ended 69 cents, or 1.2%, higher at $57.23 a
barrel.
China is pushing U.S. President Donald Trump to remove more
tariffs imposed in September as part of a so-called Phase 1
deal, which would ease the economic impact of the trade dispute
between the world's two biggest oil consumers. "While such a development could accommodate a signing of a
Phase 1 deal that would allow for a further increase in risk
acceptance and hence, bullish spillover from the equities and
into the oil complex, a major long term agreement still appears
elusive well into next year," Jim Ritterbusch, president of
Ritterbusch and Associates in Galena, Illinois, said in a
report.
OPEC Secretary-General Mohammad Barkindo said the oil market
outlook for 2020 may be brighter than previously forecast,
appearing to downplay any need for deeper production cuts.
The Organization of the Petroleum Exporting Countries and
its allies led by Russia meet in December. The so-called OPEC+
alliance has since January cut output by 1.2 million barrels per
day.
Iran's oil minister on Monday said he expects further
production cuts to be agreed in December. OPEC also said it would supply a diminishing amount of oil
in the next five years as output increases from U.S. shale
deposits and elsewhere. OPEC's production of crude oil and other liquids is expected
to decline to 32.8 million bpd by 2024, the group said in its
2019 World Oil Outlook.
Meanwhile, Asia's oil demand growth is expected to more than
double to 815,000 bpd in 2020, the head of energy consulting
firm FGE said on. In the United States, crude inventories rose 4.3 million
barrels last week to 440.5 million, data from industry group the
American Petroleum Institute showed late Tuesday, nearly triple
analysts' forecasts for a 1.5 million-barrel build. Official U.S. government data is due to be released on
Wednesday.
Oil also drew support from the U.S. Federal Reserve's
interest rate cut last week, weakness in the dollar and improved
U.S. jobs growth in October, analysts said.
"We believe that the strength in oil prices will be
short-lived, given the scale of the surplus that is expected
over the 1H20," ING analyst Warren Patterson said, referring to
the first half of 2020.
"The risk to this view is if OPEC+ surprises the market in
December by announcing even deeper than expected cuts for 2020."


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GRAPHIC: U.S. crude inventories https://tmsnrt.rs/2XlX17b
Oil production in U.S. vs. OPEC png https://tmsnrt.rs/2NmETa0
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