Brent crude has gained more than 1% Wednesday and hit a high of $59.59 per barrel, the highest level since December 17, 2018.
Crude hit 3-week high amid rally in US and global equity market amid signs of progress in US-China trade talks, China's move to cut reserve requirement rate and better than expected US non-farm payrolls data.
As per reports, US-China will continue trade talks for an unscheduled third day on Wednesday. Reports also noted that US President Donald Trump is eager to strike a deal to boost financial markets. State newspaper China Daily said on Wednesday that Beijing is keen to put an end to its trade dispute with the US, but that it will not make any "unreasonable concessions".
Crude has also benefitted from expectations of good adherence to production cuts. OPEC and non-OPEC allies last month agreed to cut output by 1.2 million barrels per day starting January. Before the cuts came into effect, OPEC's production fell 530,000 barrels a day to 32.6 million a day in December led by sharp decline in Saudi's production.
Also supporting crude price is decline in US crude oil stocks. API weekly report noted a 6.13 million barrels decline in US crude oil stocks as against forecast of 1.8 million barrels decline.