Oil hits three-month high as strong US consumer spending underpins growth hopes

From January 1, Opec+, as the alliance led by Saudi Arabia and Russia is known will begin implementing deeper cuts of 2.1 million bpd. Reuters

Oil prices rose on Friday, hitting three-month highs after data showed record online spending by US consumers, stoking faith in the world's number one economy even before the hoped-for end to the trade war between Washington and Beijing.

Brent crude, the most widely-used benchmark, was up 13 cents at $68.05 a barrel, while the West Texas Intermediate (WTI) contract climbed 13 cent at $61.81 a barrel.

A survey on Thursday showed that online holiday purchases by US consumers reached a record, beating analysts' expectations and lifting US stocks.

US consumers are “showing few signs of tightening their purse strings, which is positive for oil also”, said Stephen Innes chief Asia market strategist at AxiTrader.

Oil prices have also been buoyed by robust hopes that the New Year will usher in an end to the long-running US-China trade tariff war, a dispute that has overshadowed global economic growth prospects and left question marks over future demand for crude.

Both Brent and WTI are also boosted by the moves of Opec and other producers, including Russia, to curb production. Earlier this month Opec and its allies agreed to extend and deepen those cuts.

However, the lingering ripple effect of the trade row showed up again in data from Japan - the world's third-biggest economy - on Friday showing that industrial output shrank for a second month in November.