Oil extends first-quarter gains on tight supply, economic optimism

Oil rose on Monday, building on its largest first-quarter gains in nearly a decade, as tight supply and positive signs for the global economy supported prices.

Brent crude for June delivery was up 96 cents, or 1.42 percent, at $68.54 a barrel by 0900 GMT, having risen 27 percent in the January-March period.

U.S. West Texas Intermediate futures rose 56 cents, or 0.93 percent, to $60.70 a barrel, after gaining 32 percent in the first quarter.

Positive Chinese factory gauges and signs of progress in Sino-U.S. trade talks have boosted sentiment, helping to buoy regional stock markets.

“Oil continues to move higher, with risk appetite on the rise in global markets,” BNP Paribas strategist Harry Tchilinguirian told the Reuters Global Oil Forum.

The United States and China said they made progress in trade talks that concluded on Friday in Beijing, with Washington saying the negotiations were “candid and constructive” as the world’s two largest economies try to resolve their trade war.

Analysts have turned cautiously optimistic on the oil market, a monthly Reuters poll showed on Friday, lifting their forecast for the average Brent price in 2019 for the first time in five months to $67.12.