Oil jumps 2.0pc on expectations of production cuts

LONDON, Dec 04 (Reuters): Oil prices rose more than 2.0 per cent on Tuesday, extending gains ahead of expected output cuts by producer cartel OPEC and a mandated reduction in Canadian supply.

Brent crude oil rose $1.55 or 2.5 per cent to a high of $63.24 by 0955 GMT. US light crude was $1.25 higher at $54.20.

Both benchmarks climbed around 4 per cent on Monday after US President Donald Trump and Chinese President Xi Jinping agreed at a meeting of the Group of 20 industrialised nations (G20) to pause an escalating trade dispute.

"The market seems positively oriented following the G20 developments and heading into the OPEC meeting on Thursday," BNP Paribas commodities strategist Harry Tchilinguirian told Reuters Global Oil Forum.

The Middle East-dominated Organisation of the Petroleum Exporting Countries will meet on Thursday in Vienna to agree future output and will discuss strategy with other producers outside OPEC, including Russia.

OPEC and its allies are working towards a deal to reduce oil output by at least 1.3 million barrels per day (bpd), OPEC sources have told Reuters, adding that they were still talking to Russia about the extent of its production cuts.