When oil ministers from OPEC oil producers begin their meeting on Thursday, analysts and traders will be looking for an extension of the cartel's current production cuts, or even better, further cuts to production as a path to higher crude prices.
Brent futures rose $0.04 to $60.96 a barrel by 1116 GMT while US West Texas Intermediate crude was up $0.08 at $56.04.
Prices were also supported after Iraq's oil minister said on Sunday that OPEC and allied producers will consider deepening their existing oil output cuts by about 400,000 barrels per day (bpd) to 1.6 million bpd.
In November, both countries were showing indications for a possible signing of the "phase one" trade deal but on Tuesday, Donald Trump hinted that the deal will have to wait after the presidential election in November 2020 and that brought some chill on investors heart thereby weakening their appetite.
Russian Federation expects a constructive meeting with OPEC producers this week, its energy minister said on Tuesday, as OPEC leader Saudi Arabia presses members and allies such as Russian Federation to deepen output cuts to avoid a new glut next year.
Novak said Russia's average cut was 195,000 bpd in November but by excluding condensate its output cut could be about 225,000-230,000 bpd in December.
As it stands, OPEC nations have agreed to cut production by 1.2 million barrels per day through March 2020, and most analysts expect OPEC nations to extend those production cuts until at least summer.
"Iraq has surpassed its production target this month every month", said Rousseau.
Concerns about the inability of the United States and China, the world's two biggest oil users, to reach a preliminary deal to resolve their 17-month trade dispute also weighed on oil prices, along with discouraging U.S. economic data.
OPEC's production dropped last month led by Angola, whose output fell to the lowest in more than a decade.
Oil gained on December 4 ahead of an expected extension to production curbs by OPEC and its allies, with further support from industry data showing a larger than forecast drop in USA crude stockpiles. The article said, "Saudi Arabia will no longer compensate for other members non-compliance".
"OPEC is quite likely to do what it has often done in the past: put off taking a decision which involves changing the current system until things become clearer", said Neil Atkinson, head of the IEA's oil markets division.
"If something goes awry with Saudi production in the next few months".