2019.06.1815:26:00UTC+00Oil Futures Settle At Over 1-week High

Crude oil futures ended at more than 1-week high on Tuesday, amid mild optimism about a U.S.-China trade agreement after the U.S. President Donald Trump tweeted that he had a "very good" telephone conversation with Chinese President Xi Jinping.

Trump added that he will have an "extended meeting" with Xi at the G20 summit next week.

"Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting," Trump tweeted.

A deal between the world's two largest economies is expected to significantly boost global growth and result in increased energy demand.

Traders also weighed the likely impact of an extended output reduction by OPEC and allies, on global crude supply. The OPEC members and their allies are scheduled to meet in July to decide about extending output cuts beyond June.

West Texas Intermediate Crude oil futures for July ended up $1.97, or 3.8%, at $53.90 an ounce.

Earlier in the day, oil futures had slipped to $51.50 a barrel, amid concerns about energy demand.

Markets now look ahead to weekly inventory reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA).

While the API will release its weekly oil report later today, the EIA's data will be out Wednesday morning.