Dec. 3 (UPI) -- Crude oil prices looked stronger early Monday after advances in trade talks between the United States and China reduced concern about a possible economic slowdown caused by trade barriers potentially curbing oil demand.
As of 8:30 a.m. EST and ahead of the start of the regular session, West Texas Intermediate crude front-month futures traded 4.5 percent higher at $53.20 per barrel while Brent traded at $61.73, or 3.8 percent higher.
"The two sides have decided to halt additional tariffs due to come into force on January 1," DailyFX analyst Martin Essex told UPI in an email.
The advance occurred during talks on the sidelines of the G20 weekend meeting in Argentina, where U.S. President Donald Trump and his Chinese counterpart Xi Jinping agreed to a 90-day pause before additional, previously announced tariffs go into effect.
Earlier this year, the U.S. imposed tariffs against China, which in turn imposed additional duties against the United States. Later, additional tariffs were announced as talks did not yield to advances.
The hiked duties led to worries that a deepening trade war between the two world's biggest economies could have ripple effects and slow the entire world's economy.
Crude oil prices dropped sharply since an October 3 peak for Brent at over $86 per barrel, in part due to these economic slowdown concerns because weaker growth would reduce crude oil consumption.
"The U.S. crude oil price has broken to the upside from a downward sloping channel in place on the daily chart since the start of October, suggesting further strength ahead," Essex added.
Another impulse for the market has been a decision by the Canadian province of Alberta to force crude producers to cut output by 9 percent, he said.
The oil production cartel OPEC will have a meeting Thursday, where traders anticipate an oil production cut will be announced, Essex said.
There is speculation that Saudi Arabia and Russia, two of the world's biggest producers, have already reached an accord to cut production which has not been made public, Essex added. The United States earlier this year became the world's biggest crude oil producer.