02.01.202009:37:00UTC+00Oil Prices Rise On Trade Deal Hopes

Oil prices kicked off the new year on a positive note Thursday amid fresh optimism about a U.S.-China trade deal and an uptick in political unrest in the Middle East.

Benchmark Brent crude rose by 0.55 percent to 66.36 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 0.3 percent at $61.24 per barrel.

The upswing in prices was supported by hopes that the U.S.-China trade deal will bolster oil demand in 2020.

Trade tensions eased after U.S. President Donald Trump said that an initial trade deal with China would be signed on Jan. 15 at the White House, and that he would later travel to Beijing to begin negotiations on the next phase.

News of monetary policy easing by China also helped improve demand outlook for the commodity.

China's central bank announced a cut in banks' reserve requirement ratio by 50 basis points on Jan. 6, a move that frees up more money for banks to lend to small businesses.

Geopolitical developments also remained in focus following U.S air strikes against the Iran-backed Katib Hezbollah militia group over the weekend.

North Korean leader Kim Jong Un declared an end to moratoriums on nuclear and intercontinental ballistic missile tests and threatened a demonstration of a "new strategic weapon" soon.